Service Department – NBC Institute

MI – Mar-Jul 2020 – L1 – SA – Q2 – Costing Methods

Identify the incorrect method of allocating service department costs.

Question

In a manufacturing set-up, the service department provides services to other service departments as well as the production department. Which of the following is NOT a method of allocating the service department cost?

A. Specified order of closing
B. Repeated distribution method
C. Indirect allocation method
D. Simultaneous equation method
E. Matrix method

Answer

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Tags: Cost Allocation, Cost Management, Costing Methods, Overhead Allocation, Service Department
Level: Level 1

Topic: Costing Methods
Series: MAR/JULY 2020

Question Tag: Service Department

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MI – Mar-Jul 2020 – L1 – SA – Q2 – Costing Methods

Identify the incorrect method of allocating service department costs.

MI – Mar-Jul 2020 – L1 – SA – Q2 – Costing Methods

Identify the incorrect method of allocating service department costs.

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MI – Mar-Jul 2020 – L1 – SA – Q2 – Costing Methods

Identify the incorrect method of allocating service department costs.

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MI – Mar-Jul 2020 – L1 – SA – Q2 – Costing Methods

Identify the incorrect method of allocating service department costs.

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