The _____ method is a method for allocating service department costs that ignores other service department's costs when any given service department's costs are allocated to the revenue-producing departments.
A)direct
B)indirect
C)step-down
D)step-up

Question

Quizplus · Accepted Answer

The direct method allocates service department costs directly to the revenue-producing departments without considering the services provided between service departments. This method ignores interactions among service departments during the allocation process.

The _____ Method Is a Method for Allocating Service Department