Which of the following is not a recognized method of allocating costs of service departments to user departments?
A) The direct method
B) The reciprocal method
C) The labor hours method
D) The step method

Question

Quizplus · Accepted Answer

The labor hours method is not specifically a recognized method for allocating costs of service departments to user departments. The direct, reciprocal, and step methods are the standard approaches for this purpose. The labor hours method could be a factor in allocation but is not a method by itself for allocating service department costs.

Which of the Following Is Not a Recognized Method of Allocating