Which of the following methods ignores the fact that some service departments provide service to other service departments?
A) Direct method.
B) Indirect method.
C) Step-down method.
D) Reciprocal method.
E) Dual-cost allocation method.

Question

Quizplus · Accepted Answer

The Direct method ignores the fact that some service departments provide services to other service departments. It allocates service department costs directly to the producing departments without considering inter-service department flows.

Which of the Following Methods Ignores the Fact That Some