A key step in performing a step-down allocation is to rank the line cost pools according to an absolute criterion.

Name: A key step in performing a step-down allocation is to rank the line cost pools according to an absolute criterion.
Brand: Quizplus
Rating: 4.8 (36 reviews)

Question

Quizplus · Accepted Answer

In a step-down allocation method, the ranking of cost pools is not based on an absolute criterion but rather on the discretion of management, often considering the degree of interdepartmental service provided.

A Key Step in Performing a Step-Down Allocation Is to Rank