Which of the following methods accounts for 100% of the services that occur between service departments?
A)Direct method.
B)Indirect method.
C)Reciprocal method.
D)Step-down methoD.
E)Dual-cost allocation method.

Question

Quizplus · Accepted Answer

The reciprocal method accounts for 100% of the services that occur between service departments, by taking into account the mutual services provided by each department to one another. Both the direct and indirect methods do not consider reciprocal services, while the step-down and dual-cost allocation methods do account for some extent of reciprocal services, but not necessarily 100%.

Which of the Following Methods Accounts for 100% of the Services