(Appendix 4B)In both the direct and step-down methods of allocating service department costs,any amount of the allocation base that is attributable to the service department whose cost is being allocated is ignored.

Question

Quizplus · Accepted Answer

In order to avoid double counting, any amount of the allocation base that is attributable to the service department being allocated is excluded from the allocation pool. This is true for both the direct method and the step-down method.

(Appendix 4B)In Both the Direct and Step-Down Methods of Allocating