Which of the following methods of assigning indirect service department costs recognizes on a partial basis the reciprocal relationships among the departments?
a. step method
b. direct method
c. algebraic method
d. indirect method
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Which of the following methods recognizes some (but not all) of the services that occur between service departments?
a. Dual-cost allocation method.
b. Indirect method.
c. Step-down method.
d. Reciprocal method.
e. Direct method.
Question text
50. A cost object is:
a. the tool used to charge cost dollars to user departments.
b. a collection of costs to be assigned.
c. the primary function of a responsibility accounting system.
d. a responsibility center, product, or service to which cost is to be assigned.
e. a common cost.
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