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16. . When allocating fixed costs from service departments to production departments, managers should use instead of A) capacity used: capacity available B) capacity available:
16. . When allocating fixed costs from service departments to production departments, managers should use instead of A) capacity used: capacity available B) capacity available: budgeted capacity C) capacity used; budgeted capacity D) capacity available; capacity used 17 Which of the following statements is FALSE? A) Under the step-down method, after allocating Service Department 1 costs to Service Department 2, we do not allocate any costs back to Service Department 1. B) Under the step-down method, we ignore services provided by a service department to itself C) The total amount of service department costs allocated to user departments is the same for the step-down and direct methods. D) Under the step-down method, the first service department to allocate costs to the user departments is the one that provides the most service to the producing departments. 19 The direct method of allocating service department costs to producing departments ignores A) services provided by service departments to central corporate offices B) services provided by service departments to user departments C) services provided by service departments to other service departments D) services provided by service departments to producing departments
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