A Company Has Several Service Departments That Provide Differing Amounts

question 3

Multiple Choice

A company has several service departments that provide differing amounts of service to each other and to the company's operating departments. Which of the following statements is true?

• A)The direct method and the step-down method will result in the same amount of cost being allocated to each operating department.
• B)The direct method will result in the same amount of cost being allocated to each operating department regardless of which service department is allocated first.
• C)The step-down method will result in the same amount of cost being allocated to each operating department regardless of which service department is allocated first.
• D)The direct method is more accurate than the step-down method when service departments provide services to each other.

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Definitions:

Negative-News Message

A communication that conveys disappointing or unfavorable information to the recipient.

Admit Blame

The act of accepting responsibility for a mistake or wrongdoing.

Apologizing

The act of expressing regret or sorrow for having done something wrong or caused inconvenience or offense to someone.

Customer's Claim

A formal request or assertion made by a customer demanding a remedy or compensation for a product or service issue.