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
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Traceability: The capability to assign a cost directly to a particular activity or cost object by identifying or observing particular resources used by the activity or cost object.
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Full Cost: The sum of all costs needed by a cost object comprising the costs of activities executed by other entities in spite of of funding sources.
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Cost Finding: Cost finding methods generate cost data by analytical or sampling techniques. Cost finding methods are suitable for certain type of costs, like indirect costs, items with costs underneath set thresholds in the programs,
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