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Video of Allocating Service Department Costs, Step Down Method Ranking in Managerial Accounting course by Else Grech Accounting channel, video No. 25 free certified online
One of the methods of allocating support (or service) department costs the step-down method (also called the sequential method). In order to use the step-down method you must first rank the different service departments to determine which department should be allocated first.
This videos describes 3 different ways of ranking service (support) departments.
Here is a link to the question:
https://www.dropbox.com/s/ckjac87e4yqxlgd/Service%20Department%20Cost%20Allocation%20Example%201.docx?dl0
Thanks for watching!
Else