Place the following phases of the departmental approach in the correct order. 1.Allocate the production department costs to products.
2)Allocate service costs to the overhead costs.
3)Allocate the service department costs to the production department.
4)Trace all direct costs and allocate overhead costs to both the service and production departments.
A)3,4,1,2.
B)4,3,2,1.
C)4,3,1.
D)3,2,1.
E)1,3,2.

Question

Quizplus · Accepted Answer

The correct order is: 4, 3, 1. First, all direct costs are traced and overhead costs are allocated to both the service and production departments (4). Then, the service department costs are allocated to the production department (3). Finally, the production department costs are allocated to products (1).

Place the Following Phases of the Departmental Approach in the Correct