Method allocating costs of each service department directly to production departments; also called direct method. Under this method, no consideration is given to services performed by one service department for another. Assume the following data:

| Accounting Dictionary: Direct Allocation Method |
Method allocating costs of each service department directly to production departments; also called direct method. Under this method, no consideration is given to services performed by one service department for another. Assume the following data:

| Direct Method (in accounting) |
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