When using the step-down method,once a service department's costs are allocated to other departments,nothing is ever allocated back to it.

Question

Quizplus · Accepted Answer

This statement is true. Once a service department's costs are allocated to other departments using the step-down method, no costs are ever allocated back to that service department. The method only allocates costs one way, from service departments to production departments.

When Using the Step-Down Method,once a Service Department's Costs Are