Which overhead allocation method allocates service department costs with consideration of services rendered to other service departments?
A)step method.
B)direct method.
C)net realizable value method.
D)physical measures method.

Question

Quizplus · Accepted Answer

The step method allocates service department costs with consideration of services rendered to other service departments by allocating the costs of the first service department to other departments based on their usage of that department's services, and then repeating the process for each subsequent service department until all costs have been allocated. This method ensures that the costs of services provided by one department to another are accurately reflected in the allocation process.

Which Overhead Allocation Method Allocates Service Department Costs with Consideration