When using the direct allocation method, a cost accountant would ________.
A) not allocate support department costs to other support departments
B) use information about reciprocal services provided among support departments and therefore could generate inaccurate estimates of the cost of operating departments
C) allocate complete reciprocated costs
D) allocate support department costs to other support departments

Question

Quizplus · Accepted Answer

The direct allocation method does not allocate support department costs to other support departments; it allocates costs directly to operating departments without considering interdepartmental support services.

When Using the Direct Allocation Method, a Cost Accountant Would