The first step under the step-down method is:
A) allocate total support department costs to production departments.
B) choose a sequence in which to allocate support department costs.
C) apply a cost to the secondary support departments.
D) determine the overhead base for each production department.

Question

Quizplus · Accepted Answer

The first step under the step-down method is to choose a sequence in which to allocate support department costs. This is because support departments often provide services to each other, and choosing the correct sequence of allocation ensures that the costs are allocated in a logical and efficient manner. Only after this sequencing is determined can the other steps be taken.

The First Step Under the Step-Down Method Is