Which service department cost allocation method utilizes a "benefits-provided" ranking?
A)algebraic method
B)indirect method
C)step method
D)direct method

Question

Quizplus · Accepted Answer

The step method of service department cost allocation utilizes a "benefits-provided" ranking, where departments are ranked based on the benefits they provide to other departments, and costs are allocated accordingly, starting with the department that provides the most benefits.

Which Service Department Cost Allocation Method Utilizes a "Benefits-Provided" Ranking