Under the reciprocal services method of allocating support department costs to production departments using ABC, all inter-support-department services are considered in the allocation process.

Question

Quizplus · Accepted Answer

The reciprocal services method fully recognizes the mutual services provided among all support departments, including the services exchanged between support departments themselves, before allocating costs to the production departments.

Under the Reciprocal Services Method of Allocating Support Department Costs