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true or false 1. A support department provides internal services for both operating and other support departments. 2.Typical support departments include accounting and human resources.

true or false

1. A support department provides internal services for both operating and other support departments.

2.Typical support departments include accounting and human resources.

3. Support department costs are generally allocated to inventory when preparing financial statements under generally accepted accounting principles.

4. Managers often allocate support department costs as a means of motivating employees.

5. Allocating support department costs has some similarities to activity-based costing, for example costs are traced and allocated to cost pools.

6. Managers need to clarify their reasons for allocating support department costs before establishing cost pools.

7. Support department costs are always allocated to individual units of products or services.

8. The direct method allocates the cost of support departments only to operating departments.

9.The direct method acknowledges services provided by one support department to another support department.

10 The direct method uses each operating departments allocation rate to allocate costs to a support department.

11. The step-down method allocates one support departments cost at a time.

12. The step-down method allocates support department costs in a cascading manner.

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