The Support Department Cost Allocation Method That Completely Ignores Reciprocal

question 60

Multiple Choice

The support department cost allocation method that completely ignores reciprocal services between support departments is called the:

• A) direct method.
• B) step-down method.
• C) reciprocal method.
• D) direct method AND step-down method.

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Definitions:

International Trade

The exchange of goods, services, and capital between countries and territories, influenced by comparative advantages and economies of scale.

Infant-Industry Argument

The economic rationale for protecting new industries with tariffs or other trade barriers until they become competitive internationally.

Tariff

A tax or duty to be paid on a particular class of imports or exports, used by governments to control trade and protect domestic industries.

Import Quota

A specific limit or maximum quantity (or value) of a good permitted to be imported into a country during a given period.