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When Work Specialization Is Extensive

question 33

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When work specialization is extensive:


Definitions:

Direct Method

A technique in cost accounting where only direct costs are assigned to cost objects, ignoring indirect costs.

Step-Down Method

A cost allocation method used in accounting to assign overhead costs to products or service departments in a sequential manner.

Step-Down Method

A cost allocation method that sequentially allocates service department costs to other service departments and then to production departments.

Janitorial Department

A division within an organization dedicated to the maintenance and cleaning of buildings and facilities.

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