Which of the following is the first step in the process of allocating service costs?
A) Choose the appropriate cost-allocation base(s) and rate(s)
B) Determine whether the cost allocations achieve the desired results
C) Select and use a cost-allocation method
D) Identify the costs to be allocated to internal customers

Question

Quizplus · Accepted Answer

Identifying the costs to be allocated to internal customers is the first step in the process of allocating service costs. This involves determining which costs are directly associated with providing services to internal departments or units within the organization.

Which of the Following Is the First Step in the Process