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Which of the following statements is false regarding service department cost allocation methods? Multiple Choice The step method allocates some, but not all, service department
Which of the following statements is false regarding service department cost allocation methods?
Multiple Choice
The step method allocates some, but not all, service department costs to other service departments.
One advantage of the reciprocal method is that all reciprocal services are recognized between service departments.
The selection of an allocation base cost driver in the direct method is easier than the selection of an allocation base cost driver in the step method.
The direct method makes no cost allocations between or among service departments.
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