When using the step-down method of allocating service department costs,service departments provide support activities to ________.
A) producing departments only
B) producing departments and other service departments
C) service departments only
D) producing departments and corporate central offices only

Question

Quizplus · Accepted Answer

The step-down method of allocating service department costs involves allocating costs to producing departments and other service departments based on the portion of services they provide to each other. Therefore, the service departments provide support activities to both producing departments and other service departments.

When Using the Step-Down Method of Allocating Service Department Costs,service