Question: The step-down method allocates less total cost to operating departments than does the direct method. (truth or false) The step-down method of allocation is simpler
The step-down method allocates less total cost to operating departments than does the direct method. (truth or false)
The step-down method of allocation is simpler and easier to apply than the direct method.(truth or false)
The order in which the costs of service departments are allocated will affect the amounts allocated to an operating department when the step-down method is used.( truth or false)
Under the step-down method, once a service department's costs have been allocated to other departments, no costs should be reallocated back to the service department.(truth or false)
The step-down method of allocating service department costs takes into account some, but not all, of the reciprocal services that service departments provide to each other.(truth or false)
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