The ________ method recognizes that some service departments support the activities in other service departments as well as those in production departments.
A) direct
B) indirect
C) step-down
D) cost driver

Question

Quizplus · Accepted Answer

The step-down method recognizes that some service departments support the activities in other service departments, as well as those in production departments. This method allocates costs to service departments in a sequential order, beginning with the service department that provides the most support to other departments. This method recognizes that some service departments may provide more support to other service departments than to production departments.

The ________ Method Recognizes That Some Service Departments Support the Activities