Reciprocal Service Department Costs Are

Multiple Choice

Reciprocal service department costs are:

A) allocated to producing departments under the direct method but not allocated to producing departments at all under the step-down method.
B) allocated to producing departments under the step-down method but not allocated to producing departments at all under the direct method.
C) not allocated to producing departments under either the direct or the step-down methods.
D) allocated to producing departments under both the direct and step-down methods.