Question: Step-down also known as sequental cost allocation method a.makes it possible to rather easily calculate actual-rate allocations utilizing financial accounting data as a basis b.makes

Step-down also known as sequental cost allocation method

a.makes it possible to rather easily calculate actual-rate allocations utilizing financial accounting data as a basis

b.makes it possible to recognize accurately how support functions use each others resources

c.when utilizing actual rates, the method will lead to the support function showing an internal profit (surplus) or loss (deficit)

d..leads to a predictable result from the users (production department) viewpoint when there are changes in the allocation bases of the cost centres

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