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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Definitions:

Color Blindness

A visual impairment where an individual has difficulty distinguishing between certain colors, often red and green.

Color Deficiency

A condition where an individual's perception of colors is different from what most people see, commonly referred to as color blindness.

Total Color Blindness

A rare vision condition where an individual cannot perceive any color at all, seeing only shades of gray.

Gestalt

A psychological approach emphasizing the holistic and innate patterns of organization in perception and problem-solving, rather than focusing on individual components.