The given statement " The direct method of allocating service department costs allocates those costs to operating departments only " is TRUE.
Step-by-step explanation:
The direct approach transfers costs to each service department depending on the share of the procurement value of each agency. Many support branches are neglected in their programs.
The direct method simply transfers the expenses of each helping department to the operational divisions.
The direct method directly assigns costs to the operating departments, without any allocation to the rest of the services. The method is easy to apply but it does not take into account that other services require services, so it is less accurate.