The greatest virtue of the step- down method is:
A) the lack of understandability by managers
B) the recognition of reciprocal relationships between service departments
C) its ability to allocate production department costs to service departments
D) its simplicity

Question

Quizplus · Accepted Answer

The step-down method recognizes the reciprocal relationships between service departments by allocating the costs of each service department to the other service departments and production departments that use its services.

The Greatest Virtue of the Step- Down Method Is