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If two service department service the same number of department, which service d

ID: 2372642 • Letter: I

Question

If two service department service the same number of department, which service department's cost should be allocated first when using the step method?

The sevice department that provide the most service to other service departments.

The sevice department that provide the most service to the user departments.

The service department with the least cost.

The sevice department that provide the least service to other service departments.

The sevice department that provide the least service to the user departments.


Explanation / Answer

The step-down method is also called the sequential method. This method allocates the costs of some service departments to other service departments, but once a service department