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(Appendix 4B)Which of the Following Statements About the Step-Down Method

Question 83

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(Appendix 4B) Which of the following statements about the step-down method of allocating service department is correct?


A) It is a less accurate method of allocation than the direct method.
B) It cannot be used when a company has more than two service departments.
C) It is a simpler allocation than the direct method.
D) It ignores some interdepartmental services.

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