If two service departments service the same number of departments,which service department's costs should be allocated first when using the step method?
A)The service department that provides the most service to other service departments.
B)The service department that provides the most service to the user departments.
C)The service department with the least cost.
D)The service department that provides the least service to other service departments.
E)The service department that provides the least service to the user departments.

Question

Quizplus · Accepted Answer

The step method allocates costs based on the extent of services provided to other service departments. The department providing the most service to other service departments should be allocated first to reflect the interdepartmental support accurately.

If Two Service Departments Service the Same Number of Departments,which