Assigning Support cost
What are various methods to assign support cost?
Expert
Some of the methods to assign support cost are as follows:
A) Direct Allocation Method
B) Step-Down Method (also termed as Sequential Allocation Method)
C) Reciprocal Method
Direct Cost: The cost of resources directly used by an activity. The direct costs are assigned to actions by direct drawing of units of resources used by individual actions. A cost which is particularly recognized with a single cost o
Support Costs: Costs of activities are not directly related with the production. Typical illustrations are the costs of automation support, postage, communications, process engineering, and purchasing.
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