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15 Which of the following statements about support department cost allocation is/are true. 1. Support departments that provide services to itself should allocate a portion
15 Which of the following statements about support department cost allocation is/are true. 1. Support departments that provide services to itself should allocate a portion of its costs to itself. 2. If the support departments in an organisation mostly provide services to its operating departments (as opposed to the other support departments), then this factor would increase the likelihood of the organisation choosing the direct method instead of the reciprocal method. 3. Costs incurred by the Human Resources Department and Accounting Department of a manufacturing firm are examples of support department costs. Statement 1 only Statement 2 only Statement 2 and 3 only Statement 1 and 2 only Statement 1, 2 and 3
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