The reciprocal method is more likely to cause support department managers to control their use of other support department services than is the direct method.

Question

Quizplus · Accepted Answer

The reciprocal method allocates support department costs based on mutual services provided between support departments, leading to more awareness and control over the use of other support department services. In contrast, the direct method allocates support department costs based on a single cause-and-effect criterion, which may not encourage such control. Therefore, the statement is true.

The Reciprocal Method Is More Likely to Cause Support Department