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

Q: A company has several service departments that provide differing amounts of service to each other…

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A:

Q: The reciprocal allocation method a.is the most widely used because of its simplicity b.requires the…

A: The reciprocal technique allocates expenditures incurred y service departments to other departments…

Q: What is one key way to reduce cost-allocation disputes that arise with government contracts?

A:

Q: 19. Which of the following is the best way to compensate for inadequate segregation of duties? a.…

A: Hi student Since there are multiple questions, we will answer only first question.

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A: A service department is a cost center that provides services to the company's other departments.…

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Q: Indirect expenses a. Cannot be readily traced to one department. b. Are allocated to departments…

A:

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Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit.  Overhead expenses depend upon the nature of the business operations.