The Reciprocal Allocation Method ________

question 45

Multiple Choice

The reciprocal allocation method ________.

• A) is the most widely used because of its simplicity
• B) requires the ranking of support departments in the order that the allocation is to proceed
• C) highlights the complete reciprocated costs of support departments and how these costs differ from budgeted or actual costs of the departments
• D) allocates support-department costs to other support departments and to operating departments in a sequential manner that partially recognizes the mutual services provided among all support departments