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Which of the following statements is/are not true about cost allocation methods? Under the direct method of allocation, each support department's costs are allocated directly
Which of the following statements is/are not true about cost allocation methods? Under the direct method of allocation, each support department's costs are allocated directly to the patient services departments that use the services. The reciprocal method of allocation is usually considered to be more exact and objective than the direct method. The step-down method of allocation shows a combination of the direct method and the reciprocal method. Under the reciprocal method, all the direct costs of human resources are first allocated to both the patient services departments and the other two support departments
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