ACCT3032TuteSols79.pdf - 307 Award 1.00 point One advantage...

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307. Award: 1.00 point 308. Award: 1.00 point 309. Award: 1.00 point 310. Award: 1.00 point One advantage of the step method is that all reciprocal services are recognized between service departments. True False References True / False Difficulty: 1 Easy Learning Objective: 11-03 Allocate service department costs using the step method. With the reciprocal method, the total service department costs less the direct costs of the service department equals the cost allocated to the service department. True False References True / False Difficulty: 2 Medium Learning Objective: 11-04 Allocate service department costs using the reciprocal method. One potential disadvantage of the reciprocal method is it could overstate the cost of running the organization's service departments. True False References True / False Difficulty: 2 Medium Learning Objective: 11-04 Allocate service department costs using the reciprocal method. In deciding whether to outsource a service department or not, the cost of the service department should be estimated using the step method of allocation.
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