The __________ method of allocating costs will distribute the costs involved with overhead to the revenue-producing departments. The costs will be distributed to the individual revenue-generating departments based on a percentage of revenue or square footage.

Question

Quizplus · Accepted Answer

The direct method allocates overhead costs directly to revenue-producing departments based on a specific allocation base, such as revenue percentage or square footage.

The __________ Method of Allocating Costs Will Distribute the Costs