Which of the following best explains the major difference between the direct method and step method?
A) Under the step method, the total support department costs to be allocated will also include any costs that were allocated to that support department from other support departments.
B) Under the direct method, the total support department costs to be allocated will also include any costs that were allocated to that support department from other support departments.
C) Under the step method, the total support department costs to be allocated will never include any costs that were allocated to that support department from other support departments.
D) Under the step method, every support department receives costs allocated from every other support department.
Correct Answer:
Verified
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