There Are Several Methods for Allocating Service Department Costs to Production

question 88

Multiple Choice

There are several methods for allocating service department costs to production departments.The method which recognizes service provided by one service department to another but does not recognize reciprocal interdepartmental service is called: (CMA adapted)

• A) direct method.
• B) variable method.
• C) linear method.
• D) step-down methoD.
• Step-down is another term for step methoD.

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