The two methods for allocating service department costs to other departments are ________.
A)step-down and indirect
B)direct and step-up
C)step-down and direct
D)step-up and indirect

Question

Quizplus · Accepted Answer

Step-down and direct methods are the two primary methods used for allocating service department costs to other departments. The step-down method allocates costs from the service department to other departments in a sequential manner, while the direct method allocates costs directly to the relevant department based on actual usage. The step-up and indirect methods are not commonly used for allocating service department costs to other departments.

The Two Methods for Allocating Service Department Costs to Other