The allocation method for support department costs that can manipulate the costs allocated by changing the order of the support department cost allocation is:
A) the direct method
B) the dual-rate method
C) the reciprocal method
D) the step-down method

Question

Quizplus · Accepted Answer

The step-down method can manipulate the costs allocated by changing the order in which support departments allocate their costs to each other and to operating departments. This method allocates support department costs one at a time in a sequential manner, and the order of allocation can affect the final cost allocations.

The Allocation Method for Support Department Costs That Can Manipulate