The__________ method requires the support departments to be ranked (sequenced)in the order in which the step-down allocation is to proceed.

Question

Quizplus · Accepted Answer

The method that requires the support departments to be ranked (sequenced) in the order in which the step-down allocation is to proceed is the Step-Down method. Therefore, option D is the correct answer. Option A (Direct method) does not involve the sequencing of support departments, and option C (Incremental method) involves allocating costs based on only one prior period's costs. Option B (Reciprocal method) does involve sequencing of support departments, but it does not require them to be ranked in a specific order.

The__________ Method Requires the Support Departments to Be Ranked (Sequenced)in