Question

Which one of the following methods apportion the costs of service departments on a one- by- one basis to production department and other service departments?

•  A. Step method
•  B. Direct method
•  C. High-low method
•  D. Least squares method

Answer 1

B)Direct Method

The costs of service departments are exclusively distributed to production departments using this system, which ignores service provided by one service department to another.