Which of These Is Not an Allocation Method Commonly Used

question 40

Multiple Choice

Which of these is not an allocation method commonly used to allocate support department costs to operating departments?

• A) indirect method
• B) direct method
• C) step-down method
• D) none of the above, i.e. all are allocation methods commonly used to allocate support department costs to operating departments

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Definitions:

Current Account Deficits

A situation where a country spends more on foreign trade than it is earning and borrows capital from foreign sources to make up the difference.

International Gold Standard

A monetary system where the value of a country's currency or paper money was directly linked to gold.

Dollar Value

This refers to the worth or purchasing power of the U.S. dollar, often used in comparison to other currencies.

Assets

Resources owned or controlled by a person or entity that are expected to produce value or economic benefit in the future.