The direct method makes no cost allocations between or among service departments.

Name: The direct method makes no cost allocations between or among service departments.
Brand: Quizplus
Rating: 4.9 (32 reviews)

Question

Quizplus · Accepted Answer

The direct method allocates service department costs directly to producing departments without any allocation to other service departments. It assumes that service departments do not use services from other service departments, hence all costs are allocated as if service departments were not a user of services themselves.

The Direct Method Makes No Cost Allocations Between or Among