Which of the Following Statements About the Choice of Cost-Allocation

Multiple Choice

Which of the following statements about the choice of cost-allocation method is false?

A) Improper implementation of cost allocation methods can create distrust among internal departments
B) The direct method does not consider any interactions among service departments
C) The step-method considers all interactions among service departments
D ABC cost-driver bases better reflect cause-and-effect relations between resource spending and use than . traditional cost-allocation bases