Under the __________ method of allocating service department costs, services provided by service departments to other service departments are ignored and all service department costs are allocated directly to the operating departments.
A) step-down
B) weighted-average
C) direct
D) FIFO

Question

Quizplus · Accepted Answer

The direct method of allocating service department costs is the simplest and ignores the services provided by service departments to other service departments, allocating all service department costs directly to the operating departments. This method may not provide the most accurate results, but is easy to understand and implement.

Under the __________ Method of Allocating Service Department Costs, Services