An equivalent approach to implementing the direct method involves calculating a budgeted rate for each support department's costs.

Question

Quizplus · Accepted Answer

This statement is true. Instead of directly allocating support department costs to producing departments, a budgeted rate can be calculated based on expected usage or allocation of resources. This budgeted rate can then be used to allocate costs to producing departments.

An Equivalent Approach to Implementing the Direct Method Involves Calculating