Reciprocal Allocation Method
Barron's Accounting Dictionary:
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Reciprocal Allocation Method
Process of allocating service department costs to production departments, where reciprocal services are allowed between service departments; also known as the reciprocal method, the matrix method, the double-distribution method, the cross-allocation method, and simultaneous equation method. The method sets up simultaneous equations to determine the allocatable cost of each service department. The data for an example follows:
| Reciprocal, Recession, Receiving Report | |
| Reciprocal Arrangement, Recognition, Reconciliation |
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Barron's Accounting Dictionary
Dictionary of Accounting Terms. Copyright © 2010 by Barron's Educational Series, Inc. All rights reserved.
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