Multiple Choice
Because this allocation method recognizes that service departments often provide each other with inter-departmental service,it is theoretically considered to be the most accurate method for allocating service department costs to production departments.This method is: (CMA adapted)
A) direct method.
B) variable method.
C) linear method.
D) reciprocal methoD.
Reciprocal is considered most accurate because it includes all reciprocal services.
Correct Answer:

Verified
Correct Answer:
Verified
Q112: The Marketplace Corporation produces two consumer
Q113: The following information relates to Osceola
Q114: Criteria for selecting allocation bases for service
Q115: The step method allocates some,but not all,service
Q116: Mena Corporation has two production departments,Assembly
Q118: The method of accounting for joint product
Q119: The direct method makes no cost allocations
Q120: Service department costs are:<br>A) generally treated as
Q121: Prestige Financial Credit Company produces two
Q122: Data Master is a computer software consulting