0
Support costs can be allocated using various methods, including direct allocation, where costs are assigned based on actual usage or benefit received by each department. Another common method is the step-down allocation, which prioritizes the allocation of costs from support departments to production departments in a sequential manner. The reciprocal method is more complex, allowing for mutual support between departments by considering interdepartmental services. Lastly, the activity-based costing (ABC) method allocates costs based on the specific activities that generate costs, providing a more precise approach to cost allocation.
What else can I help you with?
What are some methods used to allocate support costs?
Support costs can be allocated using several methods, including direct allocation, where costs are assigned directly to departments based on their usage, and activity-based costing, which assigns costs based on actual activities that drive overhead. Another common method is the step-down approach, where support costs are allocated sequentially to departments based on a predetermined hierarchy. Finally, the reciprocal method considers the mutual services provided among departments, allowing for a more accurate allocation of shared costs.
How do you allocate the costs of inventory for an accounting period when you have both used and partially used material to account for?
To allocate costs of inventory for an accounting period with both used and partially used materials, you can employ methods such as First-In, First-Out (FIFO), Last-In, First-Out (LIFO), or Weighted Average Cost. FIFO assumes that the oldest inventory is used first, while LIFO assumes the newest inventory is used first. The Weighted Average Cost method calculates an average cost for all inventory available during the period, distributing costs evenly across used and partially used materials. It's essential to consistently apply the chosen method for accurate financial reporting.
Step down method and reciprocal method?
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.
What is a blanket overhead absorption rate?
Blanket overhead absorption rate is the rate used to allocate total overhead costs to number of produce units in traditional accounting system
What is used to provide separate accounting and reporting for costs incurred during an emergency or in support of a special program to obtain reimbursement for costs incurred?
emergency and special program (ESP) code
What are some methods used to allocate support costs?
Support costs can be allocated using several methods, including direct allocation, where costs are assigned directly to departments based on their usage, and activity-based costing, which assigns costs based on actual activities that drive overhead. Another common method is the step-down approach, where support costs are allocated sequentially to departments based on a predetermined hierarchy. Finally, the reciprocal method considers the mutual services provided among departments, allowing for a more accurate allocation of shared costs.
How do you allocate the costs of inventory for an accounting period when you have both used and partially used material to account for?
To allocate costs of inventory for an accounting period with both used and partially used materials, you can employ methods such as First-In, First-Out (FIFO), Last-In, First-Out (LIFO), or Weighted Average Cost. FIFO assumes that the oldest inventory is used first, while LIFO assumes the newest inventory is used first. The Weighted Average Cost method calculates an average cost for all inventory available during the period, distributing costs evenly across used and partially used materials. It's essential to consistently apply the chosen method for accurate financial reporting.
Step down method and reciprocal method?
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.
What is a job-card?
a record card relating to a job and giving details of the time taken to do a piece of work and the materials used. This is used to allocate direct labour and materials costs.
What does Activity types mean SAP?
Activity types are required for internal activity allocation and serve as tracing factors for costs and can be used to measure the internal activities, to enter them manually, automatically, or indirectly based on final costs, and to allocate them. sandhya
What is a blanket overhead absorption rate?
Blanket overhead absorption rate is the rate used to allocate total overhead costs to number of produce units in traditional accounting system
What is an argument used by protesters to support their stance?
Economic costs are too high.
What were specific methods used by the American government to garner support for the war eforrts in ww1?
The American government used propaganda to garner support for the war efforts in WW1. They used pictures (such as posters) and the press specifically.
What is the value of relocation register?
what is resource allocate register why it is used
What is used to provide separate accounting and reporting for costs incurred during an emergency or in support of a special program to obtain reimbursement for costs incurred?
emergency and special program (ESP) code
What is used to provide separate accounting and reporting for costs incured during an emergency or in support of a special program to obtain reimbursement for costs incurred?
emergency and special program (ESP) code
Is used to provide separate accounting and reporting for costs incurred during an emergency or in support of a special program to obtain reimbursement for costs incurred?
emergency and special program (ESP) code
