The overhead allocation method that allocates service department costs without consideration of services rendered to other service departments is the



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ASSIGNMENT #6 EDITED
The algebraic method

a. is also referred to as the "benefits-provided" ranking method.

b. does not consider interrelationships of the departments nor reflect these relationships in equations.

c. is not a service department cost allocation method.

d. considers all interrelationships of the departments and reflects these relationships in equations.
Question text

  1. If the head of a hotel's food and beverage operation is held accountable for revenues and costs, the food and beverage operation would be considered a :

a. cost center.

b. profit center.

c. contribution center.

d. investment center.

e. revenue center.
Question text

  1. Which of the following methods accounts for 100% of the services that occur between service departments?

a. Direct method.

b. Reciprocal method.

c. Dual-cost allocation method.

d. Indirect method.

e. Step-down method.
Question text


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