Which of the following statements is false about the order in which management determines the sequencing of support department allocations under the sequential method of allocating support department costs to production departments?
A)Departments with more employees are allocated earlier.
B)Departments with more accurate cost drivers are allocated earlier.
C)Departments serving a large number of support departments are allocated earlier.
D)Departments with higher costs are allocated earlier.

Question

Quizplus · Accepted Answer

The sequential method of allocating support department costs does not prioritize departments based on the number of employees for the sequence of allocation. Instead, it typically considers factors such as the degree of service provided to other departments or the accuracy and relevance of cost drivers.

Which of the Following Statements Is False About the Order