Q629
Method which allocates cost of support department to only operating departments is called
A.
indirect method
B.
direct method
AnswerC.
step down method
D.
reciprocal method
Answer: Option B
Solution
Answer: Option B
Solution:
Method which allocates cost of support department to only operating departments is called direct method. The direct allocation method is a technique for charging the cost of service departments to other parts of a business.