Which of the three service department allocation methods should be used for decision making? Explain your reasoning.
What will be an ideal response?
The only method that is appropriate to use for decision making is the reciprocal method. The reciprocal method attempts to determine all of the costs of a service department. The step method includes only some of the services from other service departments; the direct method ignores all of the services from other service departments.
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Answer the following statement true (T) or false (F)