Saudi Electronic University Cost Accouting Worksheet

9.1 Learning Outcomes:

Explain what are support departments, and why their costs allocated to other departments.

Discuss the process that is used to allocate support department costs.

Explain how the direct method is used to allocate support costs to operating departments.

1. Explain how the step-down method is used to allocate support costs to operating departments.
2. Explain how the reciprocal method is used to allocate support costs to operating departments.
3. 9.2 Action Required:
4. Watch the short video in the following link:
5. 3 Ways to Allocate Costs to Multiple Support Departments (Direct, Step-down, and Reciprocal methods)

9.3 Test your Knowledge (Question):

Discuss the process and methods that are used to allocate support department costs.

9.4 Instructions:

• Answer the above question to test your knowledge.

Post your answer on the discussion board using the discussion link below9.1 Learning Outcomes:
 

Explain what are support departments, and why their costs allocated to other departments.

Discuss the process that is used to allocate support department costs.

Explain how the direct method is used to allocate support costs to operating departments.

Explain how the step-down method is used to allocate support costs to operating departments.

Explain how the reciprocal method is used to allocate support costs to operating departments.

• 9.2 Action Required:

Watch the short video in the following link:

3 Ways to Allocate Costs to Multiple Support Departments (Direct, Step-down, and Reciprocal methods) 9.3 Test your Knowledge (Question):
 

Discuss the process and methods that are used to allocate support department costs.