In allocating service department cost to production dept. what is/are the methods applicable in regard? Which one method is more compelled and accurate?

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Because this allocation method recognizes that service departments often provide...
Posted by:
Hany Sabry
25-January-2015

Cost Accounting managerial accounting

Question added by Abdulqader Ahmed , finance & controlling manager , Clariant Masterbatches (Saudi) Ltd
Date Posted: 2016/01/24

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2 Answers

by Ahmed kandil , Cost Controller , Battour Holding Cpompany

reciprocal method is the best because it is consider service of all service centers each others

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by هيثم ناجى , محاسب اول , الفيوم لصناعة السكر

there ar three methods

direct method

step down metheod

reciprocal method

the last method is more complecated and the most accurate

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