The Service Department Cost Allocation Methodology That Begins with the Service

question 38

Multiple Choice

The service department cost allocation methodology that begins with the service department that receives the smallest dollar amount of service from the other service departments has its costs allocated to the other service and production departments,then distributes the total costs of the service department receiving the next smallest amount of service from other service departments,and so on is called the

• A)wave method.
• B)activity-based method.
• C)step method.
• D)pass along method.

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