Question

The method that allocates costs by explictly including all the services rendered among all support departments is the-------

Answer 1

The method that allocates costs by explicitly including all the services rendered among all support departments is called the Step-Down Method.

Step-by-step explanation:

The method that allocates costs by explicitly including all the services rendered among all support departments is called the Step-Down Method.

In the Step-Down Method, each support department allocates its costs to other support departments and to the production departments based on a predetermined hierarchy.

For example, let's say Company ABC has three support departments: IT, Human Resources, and Accounting. The IT department allocates its costs to both the Human Resources and Accounting departments, and then those two departments allocate their costs to the production departments.