Reciprocal method - PowerPoint PPT Presentation

CHAPTER 15

CHAPTER 15. Allocation of Support Department Costs, Common Costs, and Revenues. Allocating Costs of a Supporting Department to Operating Departments. Supporting (service) department—provides the services that assist other internal departments in the company

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Methods of Allocating Costs -Overview

Methods of Allocating Costs -Overview. 1. Review the three Method of Allocating Costs. -Direct Method -Step Down Method -Reciprocal Method 2. Discuss the strengths and weaknesses of each method 3. Winery Problem – platform for discussing Joint Cost Allocations

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