Home→ Cost Accounting Mcqs → Department Costs, Common Costs and Revenues →The method, which allocates the cost of support department, to operating and support departments is known as ___________?

The methods used to allocate costs of reciprocal support departments include __________?
In incremental cost allocation method, the cost object user who is ranked second in ranking order is known as __________?
The method, which allocates cost of support department for operating departments by recognizing all the mutual services provided is classified as __________?
According to incremental method, the party which receives the highest ranking in allocation of common cost is classified as __________?
If the employees of division A work for 8000 hours for $90 per hour, then the rate must be paid in division B in accordance of single rate method will be __________?
Support department cost allocation method which makes no difference between variable and fixed costs is classified as __________?
A particular term for which specific revenue measurement is required is known as __________?
The method, which uses specific information on products as weights to allocate bundled revenues for each product in bundle is classified as __________?
The third ranked product in incremental revenue-allocation method is known as _________?
The cost object user, who is ranked first in incremental cost allocation method is known as _________?
In incremental cost allocation method, the cost object user who is ranked third in ranking order is classified as __________?
The first ranked product, in incremental revenue allocation method, is classified as __________?
The method which divides the support department cost into two dimensions such as fixed and variable cost pool is classified as __________?
In stand-alone revenue-allocation method, the type of weights available for this method are __________?
The costs, which consist of interdepartmental cost allocations plus cost of support department are classified as __________?
The cost of operating activity, facility or any cost object which usually shares by two or more than two users is classified as _________?
The products, divisions and customers are the examples of __________?
The method which ranks cost object incurred by individual users, in ranking order of more responsible users is classified as __________?
The method which determines weights of cost allocation by considering cost of each user, as separate entity is known as __________?
Considering dual rate method, if employees work for 8500 budgeted hours at $120 per hour, and work for 9500 actual hours at $110 per hour, then the total cost would be __________?
The method which allocates the cost of support department to only operating departments is called __________?
The second ranked product in incremental revenue allocation method is termed as __________?
The approaches to allocate costs of support department do not include __________?
The package which consists of two or more products to be sold for single price, but components of products in package have separate stand-alone price is called __________?
The method of revenue allocation, which ranks products included in bundle according to predetermined criteria of management is known as __________?
The department which directly adds value to product or service is known as __________?
The department which provides assisting services to internal departments is classified as __________?

The method, which allocates the 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 ✔

Last Updated: May 11, 2023