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
Service cost center overheads are reapportioned to production cost centers to ensure that all costs associated with producing goods are accurately reflected in the total cost of production. This process helps in assigning the true cost of resources consumed by production activities, allowing for more accurate pricing, budgeting, and financial analysis. By redistributing these overheads, organizations can better understand the profitability of their products and make informed managerial decisions. Ultimately, it enhances the overall cost accuracy and efficiency within the organization.
Production overheads are those indirect costs associated with producing a good or service. For example, heating, lighting, rent and electricity are not physically part of the finished product but without them, the production would not be possible. It is therefore necessary to include them in the final pricing of the product for sale to ensure you can pay your bills etc. When you "charge" these "overheads" or indirect costs to final price, the cost is then said to be "absorbed" by the product. Therefore, the rates at which to charge them is called, "the absorption rates!" Hope that helped! Dee (Cork)
What is the difference between a self service and a self selection
Standard Cost Card shows that how much standard cost of direct material, direct labour and manufacturing overheads and other costs are required to manufacture product or service and it is helpful in control stage and variance analysis.
Trading businesses and service businesses
Supplies, labour, overheads and unrecoverables.
Mary Louise Casey has written: 'Allocating central service and supply costs' -- subject(s): Central service departments, Hospitals
•difference between service and delight
Primary distribution overhead cost is also called Departmentalization of overheads. It involves apportionment and allocation of overhead costs in the service and production departments.
the difference between the two is the zone of tolerance
serve and service
The biggest difference is a 'Good Service' is something and making a difference. A 'Service' by itself is just doing something for someone or for a cause. i.e - Military/war Good serivice - i.e - Community service, work at elderly homes.
Production overheads are those indirect costs associated with producing a good or service. For example, heating, lighting, rent and electricity are not physically part of the finished product but without them, the production would not be possible. It is therefore necessary to include them in the final pricing of the product for sale to ensure you can pay your bills etc. When you "charge" these "overheads" or indirect costs to final price, the cost is then said to be "absorbed" by the product. Therefore, the rates at which to charge them is called, "the absorption rates!" Hope that helped! Dee (Cork)
There is no difference. Costumer service is all about helping the costumer find the right costume for the customer.
what is the difference between a file server and a internet service provider
Difference between Public Corporation and Civil Service
The biggest difference is a 'Good Service' is something and making a difference. A 'Service' by itself is just doing something for someone or for a cause. i.e - Military/war Good serivice - i.e - Community service, work at elderly homes.