[Fill in the blank.] Under the __________ method of allocating service department costs,services provided by service departments to other service departments are ignored and all service department costs are allocated directly to the operating departments.
A) step-down
B) weighted-average
C) direct
D) FIFO

Question

Quizplus · Accepted Answer

This method is called the direct method of allocating service department costs, where services provided by one service department to another service department are ignored and all service department costs are directly allocated to the operating departments. The other options, such as step-down and weighted-average, consider the services provided by one service department to another and allocate costs accordingly. FIFO is not a method of allocating service department costs.

[Fill in the Blank