The direct method of cost allocation allocates the cost of support-service departments to all departments including other service departments.

Name: The direct method of cost allocation allocates the cost of support-service departments to all departments including other service departments.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The direct method of cost allocation allocates the costs of support-service departments only to operating (or producing) departments, not to other service departments.

The Direct Method of Cost Allocation Allocates the Cost of Support-Service