(Appendix 4B)Under the step-down method of allocation,what would be the amount of cost allocated from the Cafeteria to Custodial Services?
A) $0.
B) $7,000.
C) $7,568.
D) $8,260.

Question

Quizplus · Accepted Answer

Under the step-down method, costs are allocated sequentially, and once a department's costs are allocated, it does not receive allocations from other departments. Since Cafeteria is allocated before Custodial Services, it does not allocate any costs to Custodial Services.

(Appendix 4B)Under the Step-Down Method of Allocation,what Would Be the Amount