Complete reciprocated costs ________.
A) are less than the support department's own costs
B) include the support department's costs plus any interdepartmental cost allocations
C) are used for step-down allocations
D) are also referred to as budgeted costs

Question

Quizplus · Accepted Answer

Reciprocated costs are the costs that result after adding the support department's costs and any interdepartmental cost allocations. The reciprocal method is used to allocate these costs among the various support and operating departments. Option A is incorrect because reciprocated costs are higher than the support department's own costs. Option C is incorrect because step-down allocations are used in the allocation process, but reciprocated costs are not exclusive to step-down allocations. Option D is incorrect because reciprocated costs and budgeted costs are two distinct concepts.

Complete Reciprocated Costs ________