(Appendix 4B)The reciprocal method of allocating service department costs is much simpler than the direct method and as a consequence is much more widely used.

Question

Quizplus · Accepted Answer

The statement is false. The direct method is actually simpler than the reciprocal method. However, the reciprocal method is considered to be more accurate and appropriate for allocating service department costs.

(Appendix 4B)The Reciprocal Method of Allocating Service Department Costs Is