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Step-Down Method
A method of allocating support department costs to production departments that considers some inter-support-department services in a sequential or step-down fashion. Also known as the sequential method.
Direct Method
A method of preparing the cash flow statement where major classes of gross cash receipts and payments are disclosed.
Least Accurate
Describes the closest to being incorrect or the measurement or statement that has the highest degree of inaccuracy.
Reciprocal Services Method
A method of allocating support department costs to production departments that considers all inter-support-department services.
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