The step-down method of allocating service costs:

A. Is the simplest method all allocating service costs.

B. Ignores the fact that service department may offer services to other services departments.

C. Allocated first to the other services department and then the operating department

Activity based costing may be beneficial if:

A. Direct cosy are difficult to assign to each product

B. Your company only makes one product on a continuous basis.

C. Your company produces lines that take very different amounts of time with particular processes.