11thEditionChapter15.ppt

Service Department Costing: An ActivityApproach Chapter Fifteen Reasons for Allocating Service Department Costs Selecting Allocation Bases Selecting Allocation Bases Examples of Allocation Bases Interdepartmental Services Direct Method Direct Method Example Direct Method Example Direct Method Example Direct Method Example Direct Method Example Direct Method Example Step Method Step Method There are three key points to understand regarding the step method: ? In both the direct and step methods, any amount of the allocation base attributable to the service department whose cost is being a