Which of the following allocation methods fully recognizes services that support departments provide to each other?
A)direct method
B)sequential method
C)reciprocal method
D)all of the above

Question

Quizplus · Accepted Answer

The reciprocal method fully recognizes the services that support departments provide to each other by allocating costs based on the reciprocal nature of the services provided. The direct and sequential methods do not consider the reciprocal nature of the services and therefore may not result in accurate allocation of costs.

Which of the Following Allocation Methods Fully Recognizes Services That