Which of the following methods provides no data for service departments to monitor each other's costs?
A) Direct method.
B) Reciprocal method.
C) Step method.
D) All three methods, Direct, Step and Reciprocal, provide data for monitoring costs.

Question

Quizplus · Accepted Answer

The direct method allocates service department costs directly to production departments without considering inter-service department allocations, thus providing no data for service departments to monitor each other's costs.

Which of the Following Methods Provides No Data for Service