The Three Methods for Allocating Service Department Costs to Other

question 126

Multiple Choice

The three methods for allocating service department costs to other departments are ________.

• A) step-down, indirect and reciprocal allocation
• B) direct, step-up and reciprocal allocation
• C) step-down, direct and reciprocal allocation
• D) step-up, indirect and simultaneous equations

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Definitions:

Donee Beneficiary

A third party who benefits from a contract made between two other parties, particularly when the contract's purpose is to give a gift to the third party.

Cause of Action

A collection of sufficient facts that validates the entitlement to initiate legal action for the purpose of acquiring money, property, or enforcing a right against someone else.

Breaching Party

the party in a contract who fails to fulfill their contractual obligations, thereby violating the agreement.

Promisee

The individual or entity to which a promise or agreement is made.