Which of the following allocation methods fully recognizes services that support departments provide to each other?

Question

Quizplus · Accepted Answer

The reciprocal method is the only allocation method that fully recognizes services that support departments provide to each other. It takes into account the reciprocating services rendered between departments and allocates costs accordingly. The direct and sequential methods do not fully recognize interdepartmental services and may result in an allocation that is not reflective of the actual cost of each department's contribution.

Which of the Following Allocation Methods Fully Recognizes Services That