The support department cost allocation method that fully accounts for the mutual provision of services between support departments is called the:

A) direct method.
B) step-down method.
C) reciprocal method.
D) dual cost allocation method.

Reciprocal Method

An accounting method used for allocating costs between interdependent departments, accurately reflecting the shared services costs.

Mutual Provision

Mutual provision relates to the sharing or exchange of services, resources, or benefits between parties, often within a cooperative or collaborative framework.

Support Department Cost Allocation

The process of distributing indirect costs from support departments, such as Human Resources or IT, to operational departments or product lines.