The direct method allocates the cost of support departments only to operating departments.

Name: The direct method allocates the cost of support departments only to operating departments.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The direct method only allocates the cost of support departments to operating departments and does not allocate any costs among support departments. This method is simpler and easier to use, but it may not accurately reflect the actual usage of support department resources by operating departments.

The Direct Method Allocates the Cost of Support Departments Only