Which service department cost allocation method assigns costs directly to revenue-producing areas with no other intermediate cost pools or allocations?
A)step method
B)indirect method
C)algebraic method
D)direct method

Question

Quizplus · Accepted Answer

The direct method assigns service department costs directly to revenue-producing areas without any intermediate cost pools or allocations. This method is considered simple and straightforward but may not account for the shared usage of service departments by multiple revenue-producing areas.

Which Service Department Cost Allocation Method Assigns Costs Directly to Revenue-Producing