Answer :
The sequential method provides more information than the direct method, which allocates service costs to manufacturing departments only. That is, the direct method ignores services provided to other service departments.
What is Direct allocation method?
The direct allocation method is the method of charging the costs of the service department to other parts of the organization. This concept helps to fully cover the overhead costs that the specialized departments are responsible for.
What is the method of sequential allocation?
The sequential method is used to allocate the costs of the service department to other departments within the organization. In this approach, each service department's costs are assigned to her one department at a time.
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