What Is the Proper Sequence of Steps in Allocating Costs

question 42

Multiple Choice

What is the proper sequence of steps in allocating costs to production departments?

• A)Assign direct costs to departments,allocate indirect costs to departments,and allocate service department costs to production departments.
• B)Assign indirect costs to departments,allocate direct costs to departments,and allocate service department costs to production departments.
• C)Assign service department costs to production departments,allocate direct costs to departments,and allocate indirect costs to production departments.
• D)Assign indirect costs to departments,allocate service department costs to departments,and allocate direct costs to production departments.