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Direct Method
A cost allocation method that assigns service departments’ costs directly to producing departments without any intermediate steps.
Support Department Costs
Expenses incurred by service departments within a company that do not directly contribute to making a product but are necessary for the business to operate.
Assembly Department
A section within a manufacturing facility where components are assembled into final products, often involving both human labor and machinery.
Direct Method
A costing method that directly allocates service department costs to producing departments without apportioning them among the service departments themselves.
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