In the Preparation of Departmental Income Statements, the Preparer Completes

Multiple Choice

In the preparation of departmental income statements, the preparer completes the following steps in the following order:

A) Identify direct expenses; allocate indirect expenses; allocate service department expenses.
B) Identify indirect expenses; allocate direct expenses; allocate service department expenses.
C) Identify service department expenses; allocate direct expenses; allocate indirect expenses.
D) Identify direct expenses, allocate service department expenses, allocate indirect expenses.
E) Allocate all expenses.