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Because this allocation method recognizes that service departments often provide each other with interdepartmental service,

it is theoretically considered to be the most accurate method for allocating service department costs to production departments. This method is the ____

 

 

A. Direct method.

B. Variable method.

C. Reciprocal method.

D. Linear method.

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Question added by Hany Sabry , Finance Manager , GMC for Engineering & Feeding Industries (S.A.E)
Date Posted: 2015/01/25
Azeem Ahmed
by Azeem Ahmed , Cheif Accountant , Al Shafar Group

The reciprocal method allocating service department’s costs between other service departments as well.

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