Respuesta :
The allocation method that allocates only to operating departments is the Direct Method .
What is allocation method?
The employer and employee contributions are set aside under the benefit allocation technique into a fund that is invested in order to pay the benefit in the future. A cost allocation technique, on the other hand, makes an estimate of the total cost of benefits that will be owed and sets aside that sum.
The direct technique, the sequential (or step) method, and the reciprocal method are the three approaches that are frequently used to distribute support costs. The most effective technique to distribute overhead in the building industry is in a fair manner. After all, the goal is to divide up expenditures that each work has responsibility for, i.e., costs that either the job caused or profited from. But the expenses must also match that duty.
- The direct method is one of two accounting treatments used to generate a cash flow statement.
- The statement of cash flows direct method uses actual cash inflows and outflows from the company's operations, instead of modifying the operating section from accrual accounting to a cash basis.
To learn more about the direct method, refer
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