When using the step method to allocate support department costs, what is considered a weakness in the method?
A)The order of support department allocation must be determined.
B)All intradepartmental supports are ignored.
C)All interdepartmental supports are ignored.
D)Computations are more complex than the reciprocal method.

Question

Quizplus · Accepted Answer

The step method requires determining the order of allocation, which can affect the final cost distribution, making it a potential weakness.

When Using the Step Method to Allocate Support Department Costs