When using the step method to allocate support department costs, which of the following statements is true?
A)The step method is also called the step-up method.
B)The step method is more accurate than the direct method but less accurate than the reciprocal method.
C)The step method requires the same allocation base to be used for each support department.
D)The step method captures some, but not all, inter-support department services by allocating support department costs to other support departments and production departments.

Question

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The Answer of When using the step method to allocate support department costs, which of the following statements is true?
A)The step method is also called the step-up method.
B)The step method is more accurate than the direct method but less accurate than the reciprocal method.
C)The step method requires the same allocation base to be used for each support department.
D)The step method captures some, but not all, inter-support department services by allocating support department costs to other support departments and production departments.

When Using the Step Method to Allocate Support Department Costs