Examlex
What is a buying centre?
Service Departments
Units within an organization that support other departments but do not directly contribute to the production of goods or delivery of primary services.
Reciprocal Method
A technique used in cost accounting to allocate service department costs to production departments by recognizing the interdependencies between service departments.
Direct Method
A means of allocating service department costs directly to production departments without apportioning them among service departments first.
Step-Down Method
A cost allocation method used in accounting to distribute overhead costs from service departments to production departments and then to specific products or services.
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