Which statement or combination of statements is the most accurate regarding the direct method of service department cost allocation?

Multiple Choice

Under the direct method, all service department costs are eventually allocated to production departments

The order in which service department costs are allocated to production departments is important

Under the direct method, all service department costs are eventually allocated to production departments. The order in which service department costs are allocated to production departments is important

Under the direct method, all service department costs are eventually allocated to production departments. Once a service department's costs have been allocated, no costs are re$-$circulated back to that department

Under the direct method, all service department costs are eventually allocated to production departments. The order in which service department costs are allocated to production departments is important. Once a service department's costs have been allocated, no costs are re$-$circulated back to that department

Which statement or combination of statements is the most accurate regarding the direct method of service department cost allocation?

Multiple Choice

Under the direct method, all service department costs are eventually allocated to production departments

The order in which service department costs are allocated to production departments is important

Under the direct method, all service department costs are eventually allocated to production departments. The order in which service department costs are allocated to production departments is important

Under the direct method, all service department costs are eventually allocated to production departments. Once a service department's costs have been allocated, no costs are re$-$circulated back to that department

Under the direct method, all service department costs are eventually allocated to production departments. The order in which service department costs are allocated to production departments is important. Once a service department's costs have been allocated, no costs are re$-$circulated back to that department

Which statement or combination of statements is the most accurate regarding the direct method of service department cost allocation?

Multiple Choice

Under the direct method, all service department costs are eventually allocated to production departments

The order in which service department costs are allocated to production departments is important

Under the direct method, all service department costs are eventually allocated to production departments. The order in which service department costs are allocated to production departments is important

Under the direct method, all service department costs are eventually allocated to production departments. Once a service department's costs have been allocated, no costs are re$-$circulated back to that department

Under the direct method, all service department costs are eventually allocated to production departments. The order in which service department costs are allocated to production departments is important. Once a service department's costs have been allocated, no costs are re$-$circulated back to that department

Direct method

Indirect method

Step$-$down method

Reciprocal$-$services method

Dual$-$cost allocation method