What Will Be the Difference in the Total Service Department

Multiple Choice

What will be the difference in the total service department costs allocated between the step-method and the direct-method?

A) The step method results in more total cost being allocated to producing departments
B) The direct method results in more total cost being allocated to producing departments
C) There is no difference in the amount of total cost being allocated to producing departments
D) The answer depends on how many service departments are allocated