The Method of Allocating Service Department Costs That Allocates the Costs

question 33

Multiple Choice

The method of allocating service department costs that allocates the costs to both service departments and operating departments is the:

• A) direct method.
• B) indirect method.
• C) weighted-average method.
• D) step method.

---

Definitions:

Tariffs

Government levies on goods brought into the country.

Import Quotas

Import Quotas are government-imposed limits on the quantity or value of goods that can be imported into a country, typically used to protect domestic industries and control trade balances.

Acquired Comparative Advantage

An advantage a country develops over time in producing certain goods or services, often through investment in education, infrastructure, or technology.

Factor Endowments

The various productive resources (land, labor, capital, and technology) a country possesses, influencing its economic development and trade patterns.