Which of the following statements is true of the sequential method of allocation?
A) The sequential method is considered more accurate than the direct method.
B) The sequential method recognizes all interactions among the support departments.
C) In the sequential method, once a support department's costs are allocated, it receives a subsequent allocation from another support department.
D) In the sequential method, no cost from one support department is given to another support department.
E) The sequential method assigns support department costs only to the producing departments.

Question

Which of the following statements is true of the sequential method of allocation?​
A) ​The sequential method is considered more accurate than the direct method.
B) ​The sequential method recognizes all interactions among the support departments.
C) ​In the sequential method, once a support department's costs are allocated, it receives a subsequent allocation from another support department.
D) ​In the sequential method, no cost from one support department is given to another support department.
E) ​The sequential method assigns support department costs only to the producing departments.

Quizplus · Accepted Answer

The sequential method is considered more accurate than the direct method because it partially recognizes interactions among support departments by allocating costs in a specific sequence.

Which of the Following Statements Is True of the Sequential