ANSWERS WILL BE TRUE OR FALSE

Indicate whether each of the following statements is true or false. With the direct method of allocating service department costs, the costs are allocated to operating departments only. (Click to select) For a manufacturing company, service department costs are treated as part of selling and administrative expenses. (Click to select) The only companles that have service departments are manufacturing companles. (Click to select) The reciprocal method and the step method of allocating service department costs both allocate some of the costs to other service departments. (Click to select) v Using the reciprocal method to allocate service department costs can cause some distortion of product costs. (Click to select)