The overhead allocation method that allocates service department costs without consideration of services rendered to other service departments is the
A)step method.
B)direct method.
C)reciprocal method.
D)none of the above.

Question

Quizplus · Accepted Answer

The direct method allocates service department costs only to production departments and does not consider services rendered to other service departments. It is the simplest and least accurate method of overhead allocation.

The Overhead Allocation Method That Allocates Service Department Costs Without