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Connect Which Of The Following : https://newconnect.mheducation.com/flow/connect.html nsive Final 6 Saved Help Save & Exit Indicate whether each of the following statements is true or false. With the direct method of allocating service department costs, the costs are allocated to operating departments ony For a manufacturing company, service department costs are treated as part of selling and administrative expenses The only companies that have service departments are manufacturing companies The reciprocal method and the step method of allocating service department costs both allocate some of the costs to other service departments Using the reciprocal method to allocate service department costs can cause some distortion of product costs

Explanation / Answer

A. Answer is True.

Using the direct method of allocating service department costs, a service department costs are allocated to production departments.

B Answer is False

Service deaprtment cost are part of Product Cost

C

Answer is False

D

Answer is true

Both Method allocated some of the cost to Service department

E

Answer is True

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