Question
Which of the following is not correct with respect to the techniques of allocating support department costs? a) One disadvantage of direct method is that
Which of the following is not correct with respect to the techniques of allocating support department costs?
a) One disadvantage of direct method is that it partially recognizes the mutual services provided among all support departments.
b) In step-down method, different sequences will result in different allocation.
c) Reciprocal method fully incorporates interdepartmental relationships into the support-department cost allocation.
d) A popular step-down sequence begins with the support department that renders the highest percentage of of services to other service departments.
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