Question: When comparing the results of using the direct and sequential methods of allocating support department costs to production departments, which of the following statements is
When comparing the results of using the direct and sequential methods of allocating support department costs to production departments, which of the following statements is true for a manufacturing company that has a total of $1,500,000 in support costs to allocate? a. The direct method yields the most accurate allocation of the $1,500,000. b. The sequential method is the only acceptable method to use when there are multiple support departments to allocate, regardless of the total costs. c. The sequential method is both more accurate and easier to use than the direct method to allocate the $1,500,000. d. The sequential method can be viewed as more accurate yet somewhat more difficult in allocating the $1,500,000 because it considers some, though not all, inter-support-department services
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