Method which allocates cost of support department to only operating departments is called
A. indirect method
B. direct method
C. step down method
D. reciprocal method
Answer: Option B
Solution(By Examveda Team)
Method which allocates cost of support department to only operating departments is called direct method. The direct allocation method is a technique for charging the cost of service departments to other parts of a business.Related Questions on Costing
Basic objective of cost accounting is ________
A. tax compliance.
B. financial audit.
C. cost ascertainment.
D. profit analysis.
Process costing is suitable for ________.
A. hospitals
B. oil refing firms
C. transport firms
D. brick laying firms
The cost which is to be incurred even when a business unit is closed is a _____.
A. imputed cost
B. historical cost
C. sunk cost
D. shutdown cost
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