The method of distributing service department costs to production departments which makes no attempt to determine the extent to which one service department renders its services to another department is the:
A)Direct distribution method.
B)Sequential distribution method.
C)Service department distribution method.
D)Algebraic distribution method.

Question

Quizplus · Accepted Answer

The direct distribution method distributes service department costs to production departments without regard to any services the service departments render to each other.

The Method of Distributing Service Department Costs to Production Departments