Category: Managerial Accounting

The direct method is an approach used to allocate or apply support department costs to other departments in an organization. It simplifies the allocation process by directly assigning the costs of...

The sequential method, also known as the step-down method or the sequential allocation method, is an approach used to allocate support department costs to other departments in an organization. It...

The reciprocal services method, also known as the reciprocal allocation method or the simultaneous equation method, is an approach used to allocate support department costs to other departments in an...

A joint manufacturing process, also known as a joint production process, refers to a production process where two or more products are simultaneously produced from a common set of inputs or...

A support department, also known as a service department, is a functional area within an organization that provides support services or resources to other departments or units within the...

In activity-based costing (ABC), the distortion of product costs refers to the potential for inaccurate allocation or misrepresentation of costs to individual products or services. This distortion...