Which of the following methods of allocating support department costs is both simple and intuitive?
A)linear equation method
B)step-down method
C)hybrid method
D)reciprocal method
E)direct allocation method

Question

Quizplus · Accepted Answer

The direct allocation method is the simplest and most intuitive because it directly allocates the support department costs to the producing departments based on a pre-determined allocation base. This method does not involve any complex calculations or assumptions, making it easy to understand and implement.

Which of the Following Methods of Allocating Support Department Costs