Which of the following statements is(are) false regarding the direct method of allocating service department costs?
(A) The selection of an allocation base in the direct method is easier than the selection of an allocation base in the step method.
(B) Once an allocation is made from a service department using the direct method, no further allocations are made back to that department.
A) Only A is false.
B) Only B is false.
C) Neither of these is false.
D) Both of these are false.

Question

Quizplus · Accepted Answer

The selection of an allocation base is not inherently easier in the direct method compared to the step method. Both methods require careful consideration of an appropriate allocation base.

Which of the Following Statements Is(are) False Regarding the Direct