When Would the Direct Method and the Step-Down Method of Service

question 8

Multiple Choice

When would the direct method and the step-down method of service department cost allocation result in identical allocations being made to the operating departments?

• A) when there is only one service department
• B) when all of the costs in the service departments are fixed costs
• C) when there is an equal amount of service departments and operating departments
• D) both A and B above

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Definitions:

Deductive Reasoning

A logical process where a conclusion follows necessarily from the given premises; if the premises are true, the conclusion must also be true.

Problem Solving

The mental process of finding an appropriate way to attain a goal when the goal is not readily available.

Heritability

The proportion of variation among individuals in a population that can be attributed to genetic variations.

Intelligence Study

This refers to the scientific field of research concerned with understanding human intelligence, including how it is structured, measured, and varies among individuals.