The three methods for allocating service department costs to other departments are ________.
A) step-down, indirect and reciprocal allocation
B) direct, step-up and reciprocal allocation
C) step-down, direct and reciprocal allocation
D) step-up, indirect and simultaneous equations

Question

Quizplus · Accepted Answer

The three methods for allocating service department costs to other departments are step-down, direct, and reciprocal allocation. Choice A includes indirect allocation, which is not a recognized method. Choice B includes step-up, which is not a recognized method. Choice D includes indirect and simultaneous equation methods, which are not commonly used in practice.

The Three Methods for Allocating Service Department Costs to Other