The method that allocates each department's budgeted costs to operating departments only is called ________.
A) direct method
B) step-down method
C) reciprocal method
D) sequential method

Question

Quizplus · Accepted Answer

The direct method allocates each department's budgeted costs to operating departments only, without considering any interdepartmental services provided or received. It is the simplest and easiest method of allocation but may not reflect the actual services provided or utilized by each department.

The Method That Allocates Each Department's Budgeted Costs to Operating