Reciprocal Service Department Costs Are

question 31

Multiple Choice

Reciprocal service department costs are:

• A) allocated to producing departments under the direct method but not allocated to producing departments at all under the step-down method.
• B) allocated to producing departments under the step-down method but not allocated to producing departments at all under the direct method.
• C) not allocated to producing departments under either the direct or the step-down methods.
• D) allocated to producing departments under both the direct and step-down methods.

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Definitions:

Philip Crosby

An American businessman and author, known for promoting concepts related to quality management such as "zero defects" and the cost of quality.

Zero Defects

A quality management concept aiming for the reduction of defects and errors in a product to zero through continuous improvement.

Continuous Improvement

An ongoing effort to improve products, services, or processes by making small, incremental improvements over time.

Deming

Refers to W. Edwards Deming, an American engineer, statistician, professor, author, lecturer, and management consultant known for his work in the field of quality management and for his influence on modern business practices.