The cost-allocation method that allocates support department costs only to production departments is the:

Question

Quizplus · Accepted Answer

The direct method allocates all support department costs directly to production departments without any reallocation or allocation of support costs between support departments. It is the simplest and easiest method, but it may not accurately allocate costs if support departments provide services to each other. However, since the question only allocates support department costs to production departments, the direct method is the best choice.

The Cost-Allocation Method That Allocates Support Department Costs Only to Production