The step down method of allocating service department costs to producing departments recognizes that service departments provide support activities in ________ departments and ________ departments.
A)producing; traditional
B)producing; other service
C)activity-based costing; traditional costing
D)variable-costing; absorption-costing

Question

Quizplus · Accepted Answer

The step down method allocates service department costs to both producing and other service departments, recognizing that service departments provide support activities to both types of departments.

The Step Down Method of Allocating Service Department Costs to Producing