The step-down method of service department cost allocation completely ignores the provision of services by one service department to another service department.

Question

Quizplus · Accepted Answer

The step-down method of service department cost allocation does consider the services provided by one service department to another, by allocating costs in a sequential manner where each service department's costs are allocated to other departments based on a predetermined order, including other service departments before being allocated to the production departments.

The Step-Down Method of Service Department Cost Allocation Completely Ignores