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1. How could the direct method be useful in making decisions?

2. After researching the reciprocal method, I am in complete agreement the reciprocal method being the most efficient cost allocation method. According to an accounting resource, the reciprocal method is a method of allocating service department costs to other organizational departments, which results in providing full recognition to interdepartmental services. Lastly, I also learned the reciprocal method allocates service department costs in both directions. Can someone add to this?

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1. How could the direct method be useful in making decisions?

The direct method is usually the most useful in making decisions in a number of ways. For example, if I need to get something done immediately for my supervisor, then I could do it myself, and not go through the chain of command to accomplish it. Furthermore, I can get the approval after it is complete without facing any kind of repercussions from those that would possibly think otherwise. However, when this is a norm in the workplace, an individual is able to make sure that he or she is able to obey the norms of the culture in ...

Solution Summary

This solution discussed the direct and indirect method when making decisions.