The reciprocal services method of allocating support department costs to production using the ABC method is the most difficult and most accurate method.

Question

Quizplus · Accepted Answer

The reciprocal services method accounts for the mutual services provided among all support departments, making it more complex but also more accurate in allocating costs compared to other methods like the direct or step-down methods.

The Reciprocal Services Method of Allocating Support Department Costs to Production