Which of the Following Methods of Allocating Service Department Costs

question 127

Multiple Choice

Which of the following methods of allocating service department costs to user departments is superior?

• A) The step down method is superior because it is easy to understand.
• B) The direct method is superior because it recognizes the support provided between service departments.
• C) The direct and step down methods allocate the same amount of total costs so both methods are comparable.
• D) The step down method is superior because it recognizes the support provided between service departments.

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Definitions:

Secondary Bronchus

Branches of the primary bronchi that lead into each lobe of the lungs, playing a key role in the conductance of air to the lung tissues.

Primary Bronchus

The main passageway into the lungs, branching from the trachea to convey air into each lung.

Larynx

The voice box located in the throat, responsible for producing sound, protecting the trachea during swallowing, and regulating airflow.