The reciprocal allocation method:
A)is the most widely used because of its simplicity
B)requires the ranking of support departments in the order that the allocation is to proceed
C)is conceptually the most precise
D)results in allocating more support costs to operating departments than actually incurred

Question

Quizplus · Accepted Answer

The reciprocal allocation method is conceptually the most precise because it fully accounts for the mutual services provided among all support departments.

The Reciprocal Allocation Method