BuyFindarrow_forward

Managerial Accounting: The Corners...

7th Edition
Maryanne M. Mowen + 2 others
ISBN: 9781337115773

Solutions

Chapter
Section
BuyFindarrow_forward

Managerial Accounting: The Corners...

7th Edition
Maryanne M. Mowen + 2 others
ISBN: 9781337115773
Textbook Problem
1 views

(Appendix 4B) The method that assigns support department costs only to producing departments in proportion to each department’s usage of the service is known as

  1. a. the sequential method.
  2. b. the proportional method.
  3. c. the reciprocal method.
  4. d. the direct method.
  5. e. None of these.

To determine

Identify the method that assigns support department cost only to producing departments.

Explanation

Direct Method:

Direct method implies that the unit cost must include all the factory costs. It states that the cost of support departments should not be added in the unit cost if it is not included in producing departments’ cost because they do not play any role in selling the unit or product.

d.

Direct method only assigns support department costs to producing department. Therefore, option d is the correct answer.

a.

In sequential method, a support department can be allocated by the cost of other support department only once...

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Additional Business Solutions

Find more solutions based on key concepts

Show solutions add

Should an economic model describe reality exactly?

Essentials of Economics (MindTap Course List)

How are inflation and unemployment related in the short run?

Principles of Microeconomics (MindTap Course List)

How does the rate of population growth influence the level of GDP per person?

Brief Principles of Macroeconomics (MindTap Course List)

CORPORATE VALUATION Barrett Industries Invests a large sum of money in RD; as a result, it retains and reinvest...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)

What is the purpose of Form 940, Employers Annual Federal Unemployment Tax Return?

College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)

What is a loan amortization schedule, and what are some ways these schedules are used?

Fundamentals of Financial Management (MindTap Course List)