If a company operates two producing departments and they are serviced by the same three support departments, which support departments costs should be allocated first when using the step method?
A)The support department that provides the most service to other support departments.
B)The support department with the least amount of cost.
C)The support department that provides the most service to the user departments.
D)The service department that provides the least service to other service departments.

Question

Quizplus · Accepted Answer

In the step method, the support department that provides the most service to other support departments is allocated first to ensure that the interdepartmental services are accounted for before allocating costs to the producing departments.

If a Company Operates Two Producing Departments and They Are