chapter 11 a

Question 1

allocation bases

Answer 1

should drive the cost being allocated

Question 2

3 allocation methods

Answer 2

direct method
step down method
reciporal

Question 3

what method is not on exam

Answer 3

reciprocal

Question 4

direct method

Answer 4

Interactionsbetween service
departments areignored and all
costs areallocated directlyto operatingdepartments

Question 5

step method

Answer 5

Once a servicedepartment’s costsare allocated, other servicedepartment costsare not allocatedback to i