Which method of allocating support department costs is completed by taking the service flows to production departments only and determining each production department's share of that service? Question options: a) average method. b) step method. c) direct method. d) reciprocal method.

Which method of allocating support department costs is completed by taking the service flows to production departments only and determining each production department's share of that service? Question options: a) average method. b) step method. c) direct method. d) reciprocal method.

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter7: The Master Budget And Flexible Budgeting

Section: Chapter Questions

Problem 25Q: When allocating service department costs to production departments, why is the standard cost that...

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Question

Which method of allocating support department costs is completed by taking the service flows to production departments only and determining each production department's share of that service?

Question options:

a)	average method.

b)	step method.

c)	direct method.

d)	reciprocal method.

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