There are several methods for allocating service department costs to production departments.The method which recognizes service provided by one service department to another but does not recognize reciprocal interdepartmental service is called: (CMA adapted)
A)direct method.
B)variable method.
C)linear method.
D)reciprocal method.
E)step-down method.

Question

Quizplus · Accepted Answer

The step-down method allocates service department costs to other service departments and production departments, recognizing some interdepartmental services but not fully reciprocal ones.

There Are Several Methods for Allocating Service Department Costs to Production