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Step-down Method
An approach to allocating service department costs to production departments based on a hierarchical sequence of services provided.
Administrative Department
A segment of a company responsible for managing the general operations and ensuring the smooth functioning of the business.
Custodial Department
A division within an organization responsible for maintenance, cleaning, and security services.
Step-down Method
A cost allocation method used in accounting where overhead costs are assigned to departments in a sequential order, often starting with the department that incurs the most overhead, then allocating costs down to other departments based on predetermined criteria.
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