When the step-down method is used, the service department whose costs are allocated first is often the department that:
A) obtains the highest yield.
B) has the lowest cost.
C) is the newest.
D) serves the greatest number of other service departments.
E) serves the fewest other service departments.

Question

Quizplus · Accepted Answer

When using the step-down method for allocating service department costs, the department that serves the greatest number of other service departments is typically allocated first. This approach ensures that the interdepartmental services are accurately accounted for in the allocation process.

When the Step-Down Method Is Used, the Service Department Whose