This method of assigning service department costs is sequential and recognizes the allocation of a service department's costs to other service departments. a. simple method b. reciprocal method c. step down method d. direct method

This method of assigning service department costs is sequential and recognizes the allocation of a service department's costs to other service departments. a. simple method b. reciprocal method c. step down method d. direct method

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 19MCQ: (Appendix 4B) The method that assigns support department costs only to producing departments in...

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Market Efficiency

Market efficiency refers to the market's ability to provide investors with all available information about investment options for buying and selling securities. Market efficiency reflects the true value of securities without undervaluing or overvaluing them. When the quality and quantity of information increase, the market becomes more efficient, allowing it to reduce arbitrage and obtain higher market returns from investment. In a well-functioning market, everyone receives all information completely and immediately at no cost. It opens up a plethora of opportunities for investors to access various investment options.

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Help question 33

This method of assigning service department costs is sequential and recognizes the allocation of a service department's costs to other service departments.
a. simple method
b. reciprocal method
c. step down method
d. direct method

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(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 each of two service departments services the same number of other departments, how is it determined as to which service department to allocate first?
(Appendix 4B) The method that assigns support department costs by giving partial 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.
(Appendix 4B) The method that assigns support department costs only to producing departments in proportion to each departments usage of the service is known as a. the sequential method. b. the proportional method. c. the reciprocal method. d. the direct method. e. None of these.
How does management determine the order in which support department costs are allocated under the sequential method?
In determining the costs transferred to a third department from a second department, are the costs from a first department considered? Are they considered in the computation of the ending work in process in the second department?
a) Allocate the service department costs to the two operating departments using the direct method.
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.
The only method of allocation of service department costs to producing departments that considers reciprocal services is called the a. Step method b. Direct method c. none of the choices d. Algebraic method
Explain briefly the main differences between the direct, step-down, and reciprocal-services methods of service department cost allocation.
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.