Under-the step method of allocation, the final amount allocated to any user department depends on the order in which the allocation is made from the service departments.

Question

Quizplus · Accepted Answer

In the step method of allocation, the order in which service departments are allocated to user departments affects the final allocation amounts because once a service department's costs are allocated, they do not receive any allocations from other service departments allocated afterward.

Under-The Step Method of Allocation, the Final Amount Allocated to Any