Which of the following statements is (are) false regarding the direct method of allocating service department costs? (A) The selection of an allocation base in the direct method is easier than the selection of an allocation base in the step method. (B) Once an allocation is made from a service department using the direct

18. Which of the following cost allocation methods does not take into consideration that service centers provide services to each other? a. two-step method b. reciprocal method c. step method d. direct method

Distinguish among the three methods of allocating the costs of support departments to operating departments. The ignores any services rendered by one support department to another; it allocates each support department's costs directly to the operating departments. The a sequential manner that partially recognizes the mutual services provided among all support departments. allocates support-department costs to other support departments and to operating departments in The allocates support-department costs to operating departments by fully recognizing the mutual services provided among all support departments.

Indirect expenses a. Cannot be readily traced to one department. b. Are allocated to departments based on the relative benefit each department receives. c. Are the same as uncontrollable expenses. d. a, b, and c above are all true. e. a and b above are true.