Which of the following is a weakness of the step method of service cost allocations?
A) Computations are more complex than the reciprocal method.
B) All interdepartmental services are ignored.
C) All intradepartmental services are ignored.
D) The order of service department allocation has to be determined.

Question

Quizplus · Accepted Answer

The step method requires determining the order of service department allocation, which can affect the allocation results and is considered a weakness.

Which of the Following Is a Weakness of the Step