The reciprocal method allocates support-department costs to operating departments by fully recognizing the mutual services provided among all support departments.

Question

Quizplus · Accepted Answer

The reciprocal method is also known as the iterative method or the algebraic method. It takes into account the interdependence of support departments on each other and assigns costs accordingly. Therefore, the statement is true.

The Reciprocal Method Allocates Support-Department Costs to Operating Departments by Fully