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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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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An income statement item that represents the difference between the actual cash amount and an accounting measure of how much cash there should be. The most common example exists in a retail situation where the cash in the cash register is compared to the register tape
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Indirect Cost: A cost which can’t be recognized particularly with or traced to a specified cost object in an economically feasible manner.
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