Which service department cost allocation method assigns indirect costs to cost objects after considering some of the interrelationships of the cost objects?
A)step method
B)indirect method
C)algebraic method
D)direct method

Question

Quizplus · Accepted Answer

The step method assigns indirect costs to cost objects after considering some of the interrelationships of the cost objects. It involves identifying the department that provides the most service to other departments and allocating their costs first, then moving on to the next department until all costs are allocated.

Which Service Department Cost Allocation Method Assigns Indirect Costs to Cost