Which service department cost allocation method considers all interrelationships of the departments and reflects these relationships in equations?
A)step method
B)indirect method
C)algebraic method
D)direct method

Question

Quizplus · Accepted Answer

The algebraic method is the only cost allocation method that considers all interrelationships of the departments and reflects these relationships in equations. The step method, indirect method, and direct method do not fully consider all interrelationships.

Which Service Department Cost Allocation Method Considers All Interrelationships of the Departments