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



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

a. none of the above.

b. reciprocal method.

c. step method.

d. direct method.

  1. The minimum potential transfer price is determined by

a. the extent of idle capacity in the buying division.

b. the lowest outside price for the good.

c. negotiations between the buying and selling division.

d. incremental costs in the selling division.
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