The direct method of allocating service department costs ignores other service departments when allocating service departments' costs to user departments.

Question

Quizplus · Accepted Answer

The direct method only considers the costs of the specific service department being allocated, and does not take into account the costs of other service departments that may also be providing services to the user department. This can result in an inaccurate allocation of costs.

The Direct Method of Allocating Service Department Costs Ignores Other