The best method of allocating expenses among departments is to?
Answer Details
The best method of allocating expenses among departments would be to charge against each department those costs which are within its control. This method is called "Direct Costing." It involves identifying and allocating only the costs that can be directly attributed to a particular department or product. This method ensures that each department is held accountable for the costs that it incurs and allows for better management control. The other methods mentioned in the options, such as allocating expenses in proportion to sales, purchases, or the number of people, may not accurately reflect the true cost incurred by each department.