The reciprocal allocation method a.is the most widely used because of its simplicity b.requires the ranking of support departments in the order that the allocation is to proceed c. fully incorporates interdepartmental relationships into the support-department cost allocations d.allocates support-department costs to other support departments and to operating departments in a sequential manner that partially recognizes the mutual services provided among all support departments e.None of the answers.

The reciprocal allocation method a.is the most widely used because of its simplicity b.requires the ranking of support departments in the order that the allocation is to proceed c. fully incorporates interdepartmental relationships into the support-department cost allocations d.allocates support-department costs to other support departments and to operating departments in a sequential manner that partially recognizes the mutual services provided among all support departments e.None of the answers.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter4: Job-order Costing And Overhead Application

Section: Chapter Questions

Problem 21MCQ: (Appendix 4B) The method that assigns support department costs by giving full recognition to support...

See similar textbooks

Similar questions

Which of the following methods recognizes some (but not all) of the services that occur between service departments? Indirect method. Step-down method. Reciprocal-services method. Dual-cost allocation method. Direct method.
Which service department cost allocation method provides for reciprocal allocation of service costs among the service department as well as to the revenue producing departments? a. Method of Algebra b. Step method c. Indirect method d. direct method e. None of the above
Which one of the following statements is incorrect? A. The reciprocal method is rarely used in practice, since the computations are relatively complex. B. In the step method, any amount of the allocation base that is attributable to a service department whose cost has already been allocated, is ignored. C. Under the direct method, the amount of the allocation base attributable to the service and operating departments are used in the allocation. D. Sales have been a favourite allocation base for service department costs since it is simple, straightforward and easy to work with.
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 method, no further allocations are made back to that department.
Explain briefly the main differences between the direct, step-down, and reciprocal-services methods of service department cost allocation.
Which of the following principles should be applied when the step method of allocating service department costs is used? The sequence of allocation among departments should be randomly selected. The sequence of allocation among departments should proceed from the largest department as measured by total assets to the smallest. The sequence of allocation among departments should proceed from the largest provider of interdepartmental services to the smallest. All possible sequences of service department allocations should be computed. The sequence that provides the largest allocation of service costs should then be selected.
Reciprocal Method of Support Department Cost Allocation. Please answer in same format as question, thanks.
support department cost allocation- reciprocal services method
64. Which service department cost allocation method provides for reciprocal allocation of service costs among the service department as well as to the revenue producing departments? a• Method of Algebra b• Step method c• Indirect method d• direct method e• None of the above
Which method of allocating support department costs is completed by taking the service flows to production departments only and determining each production department's share of that service? Question options: a) average method. b) step method. c) direct method. d) reciprocal method.
(Appendix 4B) The method that assigns support department costs by giving full recognition to support department interactions is known as a. the sequential method. b. the proportional method. c. the reciprocal method. d. the direct method. e. None of these.
When using the sequential distribution method of distributing service department costs, if a service department receives services from other service departments, will those costs be allocated back to it even though it was the first service department distributed?