The step$-$down method of cost allocation is more accurate than the direct method because the

step$-$down method takes into account the services that service departments provide to each

other.

$$ true

$$ false

The step$-$down method of service department cost allocation ignores interdepartmental

services provided from one service department to another service department and allocates

all service department costs directly to operating departments.

$$ true

$$ false

Under the step$-$down method of cost allocation, the service department that provides the least

amount of service to the other departments should be allocated first.

$o.$ true

$($ false

The step$-$down method ultimately results in less total cost being allocated to operating

departments than the direct method.

$o.$ true

$$ false

Incremental analysis is an analytical approach that focuses only on those revenues and costs

that will not change as a result of a decision.

$$ true

$$ false

When expressed on a per unit basis, fixed costs can mislead decision makers into thinking of

them as variable costs.

$o.$ true

$$ false

To estimate what the profit will be at various levels of sales volume, multiply the number of

units to be sold above or below the break$-$even point by the unit contribution margin.

$$ true

$$ false

In a Cost$-$Volume$-$Profit graph $($sometimes called a break$-$even chart$),$ unit volume is

represented on the horizontal $(x)$ axis and dollars on the vertical $($Y$)$ axis.

$$ true

$$ false