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Assuming Department A is a service department, which of the following statements is true with respect to the direct method of cost allocation? Multiple Choice

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Assuming Department A is a service department, which of the following statements is true with respect to the direct method of cost allocation? Multiple Choice The allocation base used to assign costs from Department A to other departments will include the quantity of the allocation base used in Department A, the quantity used in all other service departments, and the quantity used in all operating departments. O The allocation base used to assign costs from Department A to other departments will exclude the quantity of the allocation base used in Department A, but include the quantities of the allocation base used in all other service departments and all operating departments. The allocation base used to assign costs from Department A to other departments will exclude the quantity of the allocation base used in Department A and the quantity of the allocation base used in all other service departments, but it will include the quantity of the allocation base used in all operating departments. The allocation base used to assign costs from Department A to other departments will The allocation base used to assign costs from Department A to other departments will exclude the quantity of the allocation base used in Department A and the quantity of the allocation base used in all operating departments, but it will include the quantity of the allocation base used in all other service departments

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