219. CSO: 1C3d LOS: 1C3p
Cotton Company has two service departments and three operating departments. In
allocating service department costs to the operating departments, which of the following
three methods (direct, step-down, reciprocal) will result in the same amount of service
department costs being allocated to each operating department, regardless of the order in
which the service department costs are allocated?
a. Direct and reciprocal methods only.
b. Step-down and reciprocal methods only.
c. Direct and step-down methods only.
d. Direct method only.
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