When determining the sequence of support, using the step method to allocate support department costs, all of the following statements are true except:
A)Departments with more employees are allocated earlier.
B)Departments with more accurate allocation bases are allocated earlier.
C)Departments that serve a larger number of support departments are allocated earlier.
D)Departments that have a higher cost are allocated earlier.

Question

Quizplus · Accepted Answer

The step method prioritizes departments that serve more other departments, not necessarily those with more employees.

When Determining the Sequence of Support, Using the Step Method