Because this allocation method recognizes that service departments often provide each other with inter-departmental service,it is theoretically considered to be the most accurate method for allocating service department costs to production departments.This method is: (CMA adapted)
A) direct method.
B) variable method.
C) linear method.
D) reciprocal methoD.
Reciprocal is considered most accurate because it includes all reciprocal services.

Question

Quizplus · Accepted Answer

The reciprocal method is considered the most accurate method for allocating service department costs to production departments because it recognizes that service departments may provide each other with inter-departmental service, and it includes all reciprocal services.

Because This Allocation Method Recognizes That Service Departments Often Provide