The direct method of service department cost allocation fully accounts for the costs of support that service departments provide to one another.

Name: The direct method of service department cost allocation fully accounts for the costs of support that service departments provide to one another.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The direct method ignores the services provided between service departments and allocates service department costs only to operating (or production) departments.

The Direct Method of Service Department Cost Allocation Fully Accounts