Step Down Method
Question # 00796670
Posted By:
Updated on: 03/03/2021 12:32 PM Due on: 03/12/2021
The step-down method is better than the direct allocation method because at least the step-down method captures on average half of the service flows between service departments. By comparison, the direct allocation method ignores all the service flows.
Your analysis should include what other factors (i.e. taxes) would make one method "better" than the other including required criteria of the outcomes.
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Rating:
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