The simplest cost allocation method is the:
A) Direct method
B) Step-down method
C) Reciprocal method
D) None of the above

Question

Quizplus · Accepted Answer

The direct method is the simplest cost allocation method as it allocates all costs directly to the cost objects without allocating any overhead costs. It is easy to implement and requires minimal cost information. However, it may not accurately reflect the true cost behavior of the products or services being produced.

The Simplest Cost Allocation Method Is The