The service department cost allocation methodology that begins with the service department that receives the smallest dollar amount of service from the other service departments has its costs allocated to the other service and production departments,then distributes the total costs of the service department receiving the next smallest amount of service from other service departments,and so on is called the
A)wave method.
B)activity-based method.
C)step method.
D)pass along method.

Question

Quizplus · Accepted Answer

This is the description of the step method, which allocates costs from one department to another in a step-by-step approach based on the amount of services received. The other choices do not accurately describe this methodology.

The Service Department Cost Allocation Methodology That Begins with the Service