The reciprocal allocation method ________.
A) is the most widely used because of its simplicity
B) requires the ranking of support departments in the order that the allocation is to proceed
C) highlights the complete reciprocated costs of support departments and how these costs differ from budgeted or actual costs of the departments
D) allocates support-department costs to other support departments and to operating departments in a sequential manner that partially recognizes the mutual services provided among all support departments

Question

Quizplus · Accepted Answer

The reciprocal allocation method highlights the complete reciprocated costs of support departments, showing how these costs differ from budgeted or actual costs, by fully recognizing the mutual services provided among all support departments.

The Reciprocal Allocation Method ________