Method, which allocates cost of support department to operating and support departments is known as

A indirect method
B direct method
C step down method
D reciprocal method

Correct Answer: step down method

Method, which allocates cost of support department to operating and support departments is known as step down method. The step method (also known as step down method) allocates the cost of a service department to other service departments as well as to operating departments. The cost allocation under step method is a sequential process.
Bissoy MCQ
#Commerce #Costing

Related Questions

Method, which allocates cost of support department for operating departments by recognizing all mutual services provided is classified as
A indirect method
B direct method
C step down method
D reciprocal method
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
Leto's department can deliver enough parts to fill a storeroom in 8 hours . Jessica's department uses the part to buld another product. Her department can deplete a full storeroom in 1 hours starting with an empty storeroom. how long will it take leto's area to fill the storeroom while jessica's department is working?
A 12
B 16
C 24
D 30
The Mega Tek Corporation is displaying its distribution of employees by department in a circle graph. The size of each sector of the graph respresenting a department is proportional to the percentage of total employees in that department . If the section of the circle graph representing the manufacturing department takes up 72 degree of the circlet , what percentage of Mega Tek employees are in manufacturing?
A 20%
B 27%
C 18%
D 30%
Method which allocates joint costs of joint products, considering physical measures such as volume or relative weight at point of split off is known as
A direct cost measure method
B indirect cost measure method
C physical-measure method
D relative-measure method
Method, which considers cost and cost drivers of departments such as employee relations and process engineering is termed as
A pricing method
B manufacturing method
C conference method
D inference method
In a department , 3/5 of the workers are men and the rest are women. If 1/2 of the men and 3/7 of the women in the department are over 35, what fraction of all the workers in the department are over 35?
A 33/70
B 66/70
C 33/140
D 35/140
In a department 3/5 of the workers are men and the rest women. If 1/2 of the men and 3/7 of the women in the department are over 35, what fraction of all the worker in the department are over 35?
A 33/70
B 66/70
C 33/140
D 35/140
Which mechanism allocates the binary value to the states in order to reduce the cost of the combinational circuits?
A State Reduction
B State Minimization
C State Assignment
D State Evaluation
Method which divides support department cost into two dimensions such as fixed and variable cost pool is classified as
A sales mix allocation method
B dual-rate cost-allocation method
C single rate cost allocation method
D quantity variance allocation method

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