The allocation method that ignores all services rendered between support departments is the:
A) Direct method
B) Step-down method
C) Reciprocal method
D) Dual-rate method

Question

Quizplus · Accepted Answer

The direct method involves allocating the costs of support departments directly to production departments without considering any services rendered between the support departments. This method is the simplest and easiest to use but may not necessarily provide an accurate allocation of costs.

The Allocation Method That Ignores All Services Rendered Between Support