1C3P RENDER INC. HAS FOUR SUPPORT DEPARTMENTS (MAINTENANCE, POWER, HU...

222. CSO: 1C3d LOS: 1C3p

Render Inc. has four support departments (maintenance, power, human resources, and

legal) and three operating departments. The support departments provide services to the

operating departments as well as to the other support departments. The method of

allocating the costs of the support departments that best recognizes the mutual services

rendered by support departments to other support departments is the

a. direct allocation method.

b. dual-rate allocation method.

c. step-down allocation method.

d. reciprocal allocation method.

82