Using the step method of allocating service department costs,the costs are allocated to:
A) service departments only.
B) operating departments only.
C) both service departments and operating departments.
D) neither service departments nor operating departments.

Question

Quizplus · Accepted Answer

The step method of allocating service department costs involves first allocating the costs to the service departments themselves, and then allocating those costs to the operating departments that receive their services. Therefore, the costs are allocated to both service departments and operating departments.

Using the Step Method of Allocating Service Department Costs,the Costs