When allocating service department costs to production departments, which one of the following is not a method of re-distribution —

CS Executive · Cost and Management Accounting · PYQS · December 2015
When allocating service department costs to production departments, which one of the following is not a method of re-distribution —
(A) Floor area based distribution
(B) Direct distribution
(C) Repeated distribution
(D) Trial and error method of distribution.

Answer & Explanation:

Correct Answer: Option (A)

Official answer key: (A).

Topics: Overhead Costing

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