Q624
Method, which allocates cost of support department to operating and support departments is known as
A.
indirect method
B.
direct method
C.
step down method
AnswerD.
reciprocal method
Answer: Option C
Solution
Answer: Option C
Solution:
Method, which allocates cost of support department to operating and support departments is known as step down method. The step method (also known as step down method) allocates the cost of a service department to other service departments as well as to operating departments. The cost allocation under step method is a sequential process.