The method of distributing service department costs to production departments that takes into consideration that service departments not only may provide service to but also may receive service from other service departments is the:
A)direct distribution method.
B)sequential distribution method.
C)service department distribution method.
D)algebraic distribution method.

Question

Quizplus · Accepted Answer

The method of distributing service department costs that takes into account the services that service departments both provide to and receive from other service departments is the algebraic method.

The Method of Distributing Service Department Costs to Production Departments