Question 1
Under which allocation method are one-way reciprocal support services recognized?
◦ direct method
◦ artificial cost method
◦ reciprocal method
◦ step-down method
Question 2
When using the direct allocation method, a cost accountant would ________.
◦ not allocate support department costs to other support departments
◦ use information about reciprocal services provided among support departments and therefore could generate inaccurate estimates of the cost of operating departments
◦ allocate complete reciprocated costs
◦ allocate support department costs to other support departments