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Summary

Summary Cost Allocation - Direct Step-down and Reciprocal Method

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Uploaded on
21-03-2021
Written in
2020/2021

Step by step solutions to common cost allocation problems and explanations

Institution
University Of Ottawa (U Of O )
Course
Adm3346 (ADM3346)

Content preview

COST ALLOCATION




1




Direct Method
• Allocates ssupport
pport costs onl
only to Operating Departments

• No Interaction between Support Departments prior to allocation




2

, Direct Method




3




Step-Down
p Method
• Allocates support costs to other support departments and to operating
departments that partially recognizes the mutual services provided among all
support departments

• One-Way Interaction between Support Departments prior to allocation




4
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Connected book

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Charles T. Horngren Cost Accounting; a Managerial Emphasis
  • 1962
  • 9781488612640
  • Unknown

Written for

Institution
University of Ottawa (U of O )
Study
Telfer School Of Management
Course
Adm3346 (ADM3346)
All documents for this subject (2)

Document information

Summarized whole book?
No
Which chapters are summarized?
15
Uploaded on
March 21, 2021
Number of pages
12
Written in
2020/2021
Type
SUMMARY

Subjects

  • step down method
  • reciprocal method
  • direct method
  • cost allocation
  • dual rate method
  • budgeted cost
  • actual cost
  • actual quantities
  • practical capacity
  • allocation method
  • cost allocation problem
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