Which of the Following Principles Should Be Applied When the Step

Multiple Choice

Which of the following principles should be applied when the step method of allocating service department costs is used?

A) The sequence of allocation among departments should be randomly selected.
B) The sequence of allocation among departments should proceed from the largest department as measured by total assets to the smallest.
C) The sequence of allocation among departments should proceed from the largest provider of interdepartmental services to the smallest.
D) All possible sequences of service department allocations should be computed. The sequence that provides the largest allocation of service costs should then be selected.