Which Method Assigns Support Department Costs Only to Producing Departments

question 73

Multiple Choice

Which method assigns support department costs only to producing departments, in proportion to each department's usage of the service?

• A) direct method
• B) reciprocal method
• C) sequential method
• D) proportional method

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Definitions:

SUTA Tax Rate

The state unemployment tax rate that employers pay to fund unemployment benefits, which can vary based on the employer's industry and experience with layoffs.