Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Methods of Allocating Service Costs
Direct Method
The service costs are merely allocated to the production department according to the usage of the services given.
Step-wise Method
Several of the costs of the reciprocal services will be recognized though only to several extent. The steps followed involved:
1. Select one of the service departments and allocate its costs to all the other departments including the other service departments. Generally the basis of choosing which service department to start along with is the service department such provides services to the greatest number of another department.
2. Another service department is selected and its net costs allocated the remaining departments excluding the first service departments.
3. Repeat the process till the entire service department costs have been allocated to the production departments.
Reciprocal Method
This method totally considers all reciprocal services. It is the main precise in technically finished method. These methods employ the following techniques as:
i. Simultaneous Equation
ii. Matrix Algebra
The credit term from the supplier is 2/30, net 60. Requirements: Write the calculation Determine the effective annual rate if the firm does not take the discount.
Relevant Costs and Decision-Making The relevance of costs will depend upon the purpose for that they are being utilized. Relevance is related to future decisions. The relevanc
Dixon Corporation was established on January 1, Year 1. The firm has 2 divisions, Division A and Division B. Division A manufactures standard carpets, and Division B manufactures
need help with master budget
what is cost
Division B uses normal costing in its job-order costing system, with manufacturing overhead applied based on direct labour hours. You have obtained the following information a
XYZ Corporation recieves $100,000 from investors for issuing them shares of its stock. XYZ's journal entry to record this transaction would include a a debit to investment b
Cost Book-Keeping In cost account accounts, extensive employ is made of control accounts that are based in the similar principles as those utilized in financial accounts. Two
wont questions on it and a valuable answer
Last in first out or LIFO LIFO is based upon the assumption such the stock purchased last is issued first. Stock valuation should here be based upon the prices ruling on acqui
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd