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.

Question

Quizplus · Accepted Answer

The method described in the question, which recognizes interdepartmental service between service departments, is the reciprocal method. Therefore, the best choice in this case is option D - reciprocal method.

Because This Allocation Method Recognizes That Service Departments Often Provide