Both step-down method and reciprocal method belongs to the allocation metods which can be used to allocate support department costs to opertating department.
(Now, I wanna tell you the three allocation methods are direct method, step-down method and reciprocal method.)
First of all, the step-down method allocates some (but not all) support department costs to other support departments. Secondly, the first support department's costs are allocated to all operating and support departments that use its services. Then, each subsequent support department's costs are allocated to all operating and support departments that use its services, except any support department whose costs were already allocated. What's more, allocation order must be determined.
For reciprocal method, first and foremost, the reciprocal method allocates all support department costs to other support departments. Secondly, the first step is to compute the total costs of each support department when its usage of other support department services is taken into consideration. In addition, support department costs are then allocated to all other operating and support departments that consume its services.
I hope my answer can help your work. If I have some grammar mistakes, please point out, coz I am a Chinese adolescent. Thank you very much.
There are three methods of service department allocation are in general use . 1- Direct method Ther direct method is the simplest the direct method allocates service department costs directly to the producing departments without regard for services rendered by service departments to each other. service department costs are allocated to production departments based on an allocation base appropriate to each esrvice department's function. 2- The step or step-down method Allocates some of costs of services rendered by service dapartments of each other. The step method derives its name from the procedure involved : the service departments are allocated in order, from the one that provides the most service to other service department down to the one that provides the least . 3- the reciprocal method Is the most complex and the most theoretically sound of the three methods. it is also known as the simultaneous solution method, cross allocation method, matrix allocation method,or double distribution method. The reciprocal method recognizes services rendered by all service departments to each other. BY AMIR KAMAL MASSOUD
how does the direct method of cost allocation work
STEP DOWN is costing:$5.712
it is a meas whereby not everyone can use the method
Under written down balance method depreciation is charged from original value and after that on written down balance until useful life of asset and any amount remaining at the end of useful life is the salvage value.
Step 1: Write the fraction down.Step 2: Flip it upside down.
One can use 4 methods of Cost Allocation in Healthcare Finance:1. Direct Method2. Step-Down Method3. Double Apportionment Method4. Reciprocal Method
There are three methods of service department allocation are in general use . 1- Direct method Ther direct method is the simplest the direct method allocates service department costs directly to the producing departments without regard for services rendered by service departments to each other. service department costs are allocated to production departments based on an allocation base appropriate to each esrvice department's function. 2- The step or step-down method Allocates some of costs of services rendered by service dapartments of each other. The step method derives its name from the procedure involved : the service departments are allocated in order, from the one that provides the most service to other service department down to the one that provides the least . 3- the reciprocal method Is the most complex and the most theoretically sound of the three methods. it is also known as the simultaneous solution method, cross allocation method, matrix allocation method,or double distribution method. The reciprocal method recognizes services rendered by all service departments to each other. BY AMIR KAMAL MASSOUD
There are three basic methods to allocate service department costs to production departments or programs in a not-for-profit: (1) the direct method; (2) the step method; and (3) the reciprocal method.
how do I find the reciprocal of 1 7/8
Step 1: rewrite the division problem as a multiplication Step 2: write the first fraction as is Step 3: turn the divisor (the second fraction) up-side-down (this is now a reciprocal) Step 4:follow the same steps as in multiplication steps
Yes. One method for dividing fractions is to multiply the numerator fraction by the reciprocal of the denominator fraction.
Turn it up side down: reciprocal of 3 is 1/3
how does the direct method of cost allocation work
Reciprocal is -9 reciprocal of a number is one over the number, in your case 1/-1/9 = -9. To get fraction reciprocal you turn it upside down
A reciprocal is an "upside-down number"!More technically, the reciprocal of a number is 1 divided by the number.Examples:the reciprocal of 2 is one-half (0.5)the reciprocal of 10 is one-tenth (0.1)the reciprocal of 1 = 1
To find the reciprocal of a fraction, you turn it upside down. So the reciprocal of 1/2 is 2/1, or just 2.