The preferred sequence for distributing the cost of service departments to production departments when using the sequential distribution method is:
A)to distribute the cost of the service department with the largest total overhead cost first.
B)to always distribute the cost of the Human Resources Department first.
C)to distribute the costs of the service departments to the production department having the largest amount of overhead cost first.
D)to distribute the costs of the service department that services the greatest number of departments first.

Question

Quizplus · Accepted Answer

The sequential distribution method allocates costs based on the service department that provides services to the greatest number of other departments first, ensuring that the most widely used services are allocated before others.

The Preferred Sequence for Distributing the Cost of Service Departments