Reciprocal Method for Allocating Support Costs (how to solve without using linear equations)

This video shows how to use the Reciprocal Method to allocate the costs of multiple support departments when the support departments provide services to each other. The example provided in the video shows how to allocate costs in this manner without setting up linear equations.
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[@SANTOSHPATEL-rb1bu]

You explained that with such ease... Thank you so much...

[@chrissprague5209]

First ever Ed spira video that missed

[@MyFinancialFocus]

Great explanation!

[@AbdullahMohammed-gg7uv]

How did you calculate 18,157 for mountaineering and Kayaking ??

[@geraldqiao9499]

YOU SAVE MY LIFE !!!

[@crisostomoalmeida670]

Great tutorial

[@SagaraTrinh]

Could you please make a video about the Double Step-Down Method? Thank you.

[@Frederico_El_Padrino]

Thank You For Your Videos!!! Just so I'm clear... Does the Reciprocal Method always start with the HR Department..?? And the goal, to zero out both sides?? ("Stages Of Allocation")

[@quangvinhao6803]

Please help me! I wana understand the method

[@paulanderson3905]

All of your support cost allocation videos are not viewable at present. Just blurred color lines. Can you fix please.

[@quangvinhao6803]

What advantage of this method?

[@sebastianringlstetter6103]

It's the most complete and accurate

[@Frederico_El_Padrino]

*Now we're gonna Allocate Sum'BYKE! Lol, ❤this!

[@mikhailbespartochnyy2555]

How would you handle a case when there's more than two support departments? Let's say there's a third one, a Software Development department with $40,000 of costs going to with 10,000 hours going to Mountaineering, 20,000 hours to Kayaking, and 10,000 to HR. This is an actual scenario that I'm working on trying to solve. Any help will be much appreciated.

[@mikhailbespartochnyy2555]

Still struggling with this. Edspira pleeaaaaase notice me. It's hard to find anything on this topic. Any help will be much appreciated :)

[@judepark9825]

you might wanna use multiple linear equations, using 3 variables instead of 2. Plug the variables to each other to solve the equation. e.g. Admin cost = 40,000 + 0.25 HR + 0.25 Software, and HR cost = 30,000 + 0.2 Admin + 0 software, then HR cost = 30,000 + 0.2 (40,000+0.25 HR+0.25 Software), and so on.

[@suttonfernando]

wtf lol