Which of the following are true of the step method? Once an allocation is made...

70.2K

Verified Solution

Question

Accounting

Which of the following are true of the step method?
Once an allocation is made from a service department, no further allocations are made back to that department.
Service department costs are allocated directly to user departments, ignoring intermediate users.
Allocations must be made first from the service department that has provided the smallest proportion of its total services to other service depart-
ments.
The order of allocation can impact the percentage of service costs ignored in the allocation process.
image

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students