Cost Accounting (15th Edition)

Published by Prentice Hall
ISBN 10: 0133428702
ISBN 13: 978-0-13342-870-4

Chapter 15 - Allocation of Support-Department Costs, Common Costs, and Revenues - Assignment Material - Questions - Page 622: 15-8

Answer

The reciprocal method is conceptually the most defensible because it fully accounts for the mutual services provided among all departments, both support and operating, resulting in a more accurate allocation of costs.

Work Step by Step

No steps
Update this answer!

You can help us out by revising, improving and updating this answer.

Update this answer

After you claim an answer you’ll have 24 hours to send in a draft. An editor will review the submission and either publish your submission or provide feedback.