The fixed costs of service departments should be allocated to operating departments in predetermined lump-sum amounts that are determined in advance.

Name: The fixed costs of service departments should be allocated to operating departments in predetermined lump-sum amounts that are determined in advance.
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Quizplus · Accepted Answer

This is known as the allocation of fixed costs using the direct method, where the fixed costs are allocated in predetermined amounts, rather than based on usage or other allocation factors.

The Fixed Costs of Service Departments Should Be Allocated to Operating