As an example consider the photocopying company

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Unformatted text preview: e Maintenance cost center since Maintenance costs already have been allocated, and, with the stepdown method, once a cost center’s costs have been allocated, it cannot receive allocations. This is why the sequence of service center allocations is an important consideration under the stepdown approach. (As discussed earlier, this problem is avoided with the reciprocal allocation technique.) We can’t use salary dollars from the Administration cost center, since to do so would result in an inability to fully allocate all of the Administration costs. The reason for this may be unclear at the moment; it will be clarified once we have allocated the costs of the Administration cost center. •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••...
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This document was uploaded on 03/30/2014.

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