There are several methods for allocating service department costs to production departments.The method which recognizes service provided by one service department to another but does not recognize reciprocal interdepartmental service is called: (CMA adapted)
A) direct method.
B) variable method.
C) linear method.
D) step-down methoD.
Step-down is another term for step methoD.

Question

Quizplus · Accepted Answer

The step-down method allocates service department costs to other service departments and production departments, but it does not fully account for reciprocal services between service departments.

There Are Several Methods for Allocating Service Department Costs to Production