repeated distribution method
A company uses the repeated distribution method to reapportion service department costs. The use to this method suggests
A the company’s overhead rates are bases on estimates of cost and activity level, ratber than actual amounts.
B there are more service departments than production cost centres.
C the company wishes to avoid under-or over-absorption of overheads in its production cost centres.
D the service departments carry out work for each other.
repeated distribution method