Consider the Following Statements About the Direct Method of Service

question 74

Multiple Choice

Consider the following statements about the direct method of service department cost allocation:
I. Under the direct method, all service department costs are eventually allocated to production departments.
II. The order in which service department costs are allocated to production departments is important.
III. Once a service department's costs have been allocated, no costs are re-circulated back to that department.
Which of the above statements is (are) correct?

• A) I only.
• B) II only.
• C) I and II.
• D) I and III.
• E) I, II, and III.

---

Definitions:

Leadership Performance

The effectiveness with which a leader guides, motivates, and influences their team towards achieving goals.

Leaderful Organization

A concept emphasizing shared leadership within an organization, encouraging members at all levels to take initiative and participate in decision-making processes.

Shared Leadership

is a leadership approach where members of a group or team share the roles and responsibilities of leadership, often leading to more collaborative and inclusive decision-making.

Task-oriented Instructors

Educators who focus primarily on the completion of specific tasks or the acquisition of particular skills by students.