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Under the Step-Down Method of Allocation

Question 103

Multiple Choice

Under the step-down method of allocation:


A) The costs for the support department with the smallest total are allocated first
B) When the second support department's costs are allocated, they are allocated to each of the other departments, but not to the first support department that was allocated.
C) Once a support department's costs have been allocated, it is available for an additional allocation
D) Support department costs are allocated solely to operating departments

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