Which of the following statements is (are) false regarding the direct method of allocating service department costs? (A) The selection of an allocation base in the direct method is easier than the selection of an allocation base in the step method. (B) Once an allocation is made from a service department using the direct
Which of the following statements is (are) false regarding the direct method of allocating service department costs? (A) The selection of an allocation base in the direct method is easier than the selection of an allocation base in the step method. (B) Once an allocation is made from a service department using the direct
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter4: Accounting For Factory Overhead
Section: Chapter Questions
Problem 16Q: When using the sequential distribution method of distributing service department costs, if a service...
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Question
Which of the following statements is (are) false regarding the direct method of allocating service department costs? |
(A) |
The selection of an allocation base in the direct method is easier than the selection of an allocation base in the step method. |
(B) |
Once an allocation is made from a service department using the direct method, no further allocations are made back to that department. |
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