Which of the following methods would be of little use when allocating service department costs to production departments?
A) The direct method.
B) The reciprocal method.
C) The step-down method.
D) The net-realizable-value method.
E) The dual-cost allocation method.

Question

Quizplus · Accepted Answer

The net-realizable-value method is primarily used in inventory costing to allocate joint costs to products at the split-off point based on their relative sales values, not for allocating service department costs to production departments.

Which of the Following Methods Would Be of Little Use