Which Statement Concerning the Step-Down Method of Allocating Support Department

question 17

Multiple Choice

Which statement concerning the step-down method of allocating support department costs is not correct?

• A) The method allocates costs one department at a time
• B) The cost object in the allocation exercise is the support departments and the operating departments
• C) The method recognises that support departments provide support for other support departments
• D) The allocation process begins with the support department that provides the least service to the other support departments

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