{"id":44000,"date":"2024-04-15T21:37:27","date_gmt":"2024-04-15T21:37:27","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=44000"},"modified":"2024-04-15T21:37:27","modified_gmt":"2024-04-15T21:37:27","slug":"method-which-allocates-cost-of-support-department-for-operating-departments-by-recognizing-all-mutual-services-provided-is-classified-as","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/method-which-allocates-cost-of-support-department-for-operating-departments-by-recognizing-all-mutual-services-provided-is-classified-as\/","title":{"rendered":"Method, which allocates cost of support department for operating departments by recognizing all mutual services provided is classified as"},"content":{"rendered":"

[amp_mcq option1=”indirect method” option2=”direct method” option3=”step down method” option4=”reciprocal method” correct=”option4″]<\/p>\n

The correct answer is D. reciprocal method.<\/p>\n

The reciprocal method is a method of allocating support department costs to operating departments that recognizes all mutual services provided. This method is more accurate than the direct method or the step-down method, which do not recognize mutual services.<\/p>\n

The direct method allocates support department costs to operating departments based on the direct use of the support department’s services by the operating department. The step-down method allocates support department costs to operating departments in a series of steps, starting with the support department that provides the most services to other support departments. The reciprocal method allocates support department costs to operating departments based on the use of the support department’s services by the operating department, as well as the use of the support department’s services by other support departments.<\/p>\n

The reciprocal method is more accurate than the direct method or the step-down method because it recognizes all mutual services provided. This is important because it ensures that all operating departments are charged for the support services they use.<\/p>\n

The reciprocal method is more complex than the direct method or the step-down method, but it is the most accurate method of allocating support department costs to operating departments.<\/p>\n","protected":false},"excerpt":{"rendered":"

[amp_mcq option1=”indirect method” option2=”direct method” option3=”step down method” option4=”reciprocal method” correct=”option4″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[952],"tags":[],"class_list":["post-44000","post","type-post","status-publish","format-standard","hentry","category-costing","no-featured-image-padding"],"yoast_head":"\nMethod, which allocates cost of support department for operating departments by recognizing all mutual services provided is classified as<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/method-which-allocates-cost-of-support-department-for-operating-departments-by-recognizing-all-mutual-services-provided-is-classified-as\/\" \/>\n<meta property=\"og:locale\" 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