The Direct Allocation Method

question 29

Multiple Choice

The direct allocation method:

• A)partially recognizes the services provided among support departments
• B)is also referred to as the sequential method
• C)is conceptually the most precise method
• D)results in allocating only the support costs used by operating departments

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Definitions:

Addition Rule

A method used in probability to determine the total probability of the occurrence of at least one of several events.

Deck of Cards

A standard set of 52 playing cards, used in various games, consisting of four suits: hearts, diamonds, clubs, and spades.

Addition Rule

In probability, a rule that calculates the likelihood of any of two or more mutually exclusive events occurring.

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An unexpected event involving a vehicle that usually results in damage and/or injury.