Which of the following statements is false with regards to departmental cost allocations?
A) amounts allocated to departments will most likely differ depending on the cost allocation method used
B) the total amount allocated among departments will differ in total depending on the cost allocation method used
C) the reciprocal method is usually the most conceptually precise method because it considers mutual services provided among all support departments
D) the step-down and direct methods are simple for managers to compute and understand relative to the reciprocal method

Question

Quizplus · Accepted Answer

The total amount allocated among departments does not differ in total depending on the cost allocation method used; what changes is how the total costs are distributed among the departments, not the total amount of costs allocated.

Which of the Following Statements Is False with Regards to Departmental