The direct method sequence of allocations begins with the service department that renders the greatest service to the greatest number of other service departments.

Question

Quizplus · Accepted Answer

The direct method of allocation does not prioritize the sequence based on the service department that renders the greatest service to the greatest number of other departments; it allocates service department costs directly to producing departments without distributing service department costs among other service departments.

The Direct Method Sequence of Allocations Begins with the Service