Under the retainer fee approach to allocating service department costs, which of the follow is correct?

An approach meant to keep managers from making use of service departments

An approach meant to encourage managers to use service departments as they have to pay for the service regardless.

The fundamental reason for using the Direct Method in cost allocation

None of the above

Answer rating: 100% (QA)

Under the retainer fee approach to allocating service department c... View the full answer