Which of the following methods recognizes some (but not all) of the services that occur between service departments?
A) Direct method.
B) Step-down method.
C) Indirect method.
D) Reciprocal method.
E) Dual-cost allocation method.

Question

Quizplus · Accepted Answer

The step-down method recognizes some of the services that occur between service departments by allowing for a partial recognition of interdepartmental services. It allocates costs of service departments to other service and operating departments in a sequential manner, reflecting some, but not all, interdepartmental services.

Which of the Following Methods Recognizes Some (But Not All)