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Support Cost Allocation using Step Down Method (Cost Accounting Tutorial #33)
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⌚Timestamps
0:00 - Introduction
2:20 - Example: Allocating Using the Step Down Method
In this managerial accounting tutorial we use the step down method to allocate costs from support departments to revenue producing departments. REMEMBER that the ultimate goal is to allocate support cost to revenue producing departments.
The step down method starts to allocate the support department that provides the most support for ALL support departments (depending on cost). So we'll allocate out the cost and figure out which one to use and then begin allocating!
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⌚Timestamps
0:00 - Introduction
2:20 - Example: Allocating Using the Step Down Method
In this managerial accounting tutorial we use the step down method to allocate costs from support departments to revenue producing departments. REMEMBER that the ultimate goal is to allocate support cost to revenue producing departments.
The step down method starts to allocate the support department that provides the most support for ALL support departments (depending on cost). So we'll allocate out the cost and figure out which one to use and then begin allocating!
Website: notepirate.com
Follow us on Facebook: facebook.com/pages/Note-Pirate/514933148520001?…
Follow us on Twitter: twitter.com/notepirate
We appreciate all of the support you have given us. Be a part of the mission to help us reach more students by subscribing, liking and adding the videos to your favorites!
** Notepirate is privately owned and exclusive to Notepirate.com.**
About this tutorial
Notepirate published this 11:06 video tutorial on October 28, 2014. It has been watched 100,396 times on YouTube.
- Channel
- Notepirate
- Category
- Education
- Duration
- 11:06
- Published
- October 28, 2014
- Views
- 100,396
- Likes
- 735
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