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Support Department Cost Allocation
The distribution of overhead costs from auxiliary departments (like maintenance or HR) to producing departments based on relevant allocation bases.
Support Department Cost Allocations
The process of distributing indirect costs from service departments to the departments that directly contribute to revenue generation.
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.
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