Which of the following is one of the methods of allocating support department costs to operating departments that partially recognizes mutual service provided among all support departments?
A) dual-cost allocation method
B) direct method
C) sequential allocation method
D) single-rate cost allocation method

Question

Quizplus · Accepted Answer

The sequential allocation method partially recognizes mutual services provided among all support departments by allocating the costs of each support department in a specific order, taking into account the services received from other support departments. In contrast, the direct method completely ignores mutual services, while the dual-cost and single-rate methods fully allocate support department costs to operating departments without recognizing mutual services.

Which of the Following Is One of the Methods of Allocating