Which one of the following methods of cost allocation is completed by taking the service flows to production departments only and determining each production department's share of that service?
A)Direct method.
B)Indirect method.
C)Step method.
D)Reciprocal method.
E)Cross-functional method.

Question

Quizplus · Accepted Answer

The Direct method of cost allocation assigns the costs of service departments directly to the production departments without allocating costs between service departments. It considers only the service flows to production departments, ignoring any services provided between service departments themselves.

Which One of the Following Methods of Cost Allocation Is