The step-down allocation method:
A)typically begins with the support department that provides the highest percentage of its total services to other support departments
B)recognizes the total amount of services that support departments provide to each other
C)allocates complete reciprocated costs
D)offers key input for outsourcing decisions

Question

Quizplus · Accepted Answer

The step-down allocation method typically begins with the support department that provides the highest percentage of its total services to other support departments. This is because this department has more influence over the allocation of costs to the other departments.

The Step-Down Allocation Method