Cost And Management Accountıng Deneme Sınavı Sorusu #1391885
I. Allocate service department costs to operating department
II. Allocate operating department costs to products
III. Direct costs are traced directly and indirect costs are allocated to operating and support departments
Which is the correct order of the stages in the allocation of indirect costs?
I-II-III |
II-III-I |
III-I-II |
III-II-I |
II-I-III |
There are three stages in the allocation of indirect costs. The first stage; direct costs are traced directly and indirect costs are allocated to operating and support departments. In addition, if they have period expenses they are also transferred to the income statement. The second stage; allocate service department costs to operating departments. The third stage; allocate operating department costs to products.
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