Under the Direct Method

question 9

Multiple Choice

Under the direct method:

• A) A support department's costs are allocated only to final operating department users
• B) A support department's costs are allocated only to other support departments
• C) The costs of the support departments are allocated sequentially
• D) The costs of the support departments are allocated in order of their magnitude

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Definitions:

Median

In a sequence of numbers sorted from lowest to highest, the median represents the number that lies at the midpoint.

Mode

The commonly encountered value within a series of data.

Mode

The value or category that appears most frequently in a data set.

Central Tendency

A statistical measure that identifies a single value as representative of an entire distribution, aiming to provide a concise description of a dataset's overall pattern.