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Step-down Method
A cost allocation method that sequentially assigns service department costs to other departments, including other service departments, based on specified criteria.
Machine Hours
A measure of production time, representing the total hours that machinery is operated in the manufacturing of a product.
Number Of Employees
The overall number of people working for a firm, encompassing both those in full-time and part-time positions.
Step-down Method
A cost allocation method used in accounting to distribute overhead costs to various departments or products.
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