Which of the Following Statements Is False Regarding the Six-Step

Multiple Choice

Which of the following statements is false regarding the six-step process as it is utilized in the reciprocal services method?

A) Steps 1-3 of the reciprocal services method are the same as for the direct and sequential methods.
B) In Step 4, the proportional usage of each support department's cost driver by the other departments to which its costs are to be allocated is determined.
C) In Step 5, support department costs are allocated sequentially among the departments by using a single algebraic equation.
D) In Step 6, production department costs are applied to products.