Service Department Cost Allocation: Step Method

[@anthonymckinney885]

I'm taking Financial and Managerial Accounting for MBA's at a well-regarded public University in the Northeast and this video was far more useful than the classroom materials and professor instruction on this topic. Excellent presentation, thanks!

[@timfisher1003]

Your video has helped me grasp a concept much more quickly than by simply reading about it. Thank you!

[@kahlschlag17]

You explain thing very well and I enjoy watching all your accounting uploads. I would be great if you could upload a clip on the reciprocal method as well.

[@EmmanuelMarkus-nm2dp]

Very helpful tutorial and clearly explains. Thank you for your time and explanation

[@user-re9fd3gq7w]

Thank you a lot the best explanation i have ever seen

[@claratc960]

Hi, why did you delete the direct costs in the daycare facility when you started allocating it? I thought the direct costs didn't have anything to do

[@maj267]

absolutely great video, thank you so much

[@mohammadfahim3533]

wonderful and very understandable

[@nontuthuzelo116]

Thank you🌻

[@abhidhale6127]

Mam there is no video on reciprocal method?

[@walledsayed5238]

awe you are amazing thank you very much

[@accountinghelp]

Thank you for watching!

[@everykindavdo]

Thanks very much

[@nelsonkei7741]

thank you

[@sadeepalakshan7025]

Nice explain thank you❤ I have one question how i allocate service department cost ,the step order is not given.how i find what is allocate first and other after it.

[@accountinghelp]

If a step order has not been given, then you will allocate the service department with the greatest costs first. (Descending order: largest to smallest)

[@jillh763]

Could you load videos for Cost location using NRV, reciprocal method, and Physical quantity methods?

[@gattosazio7978]

another thing this takes more than the direct method other than time and concentration, is my sanity

[@regularbloke7410]

what is the reason why you can't allocate daycare costs back to daycare costs ?

[@accountinghelp]

Because the whole point of what we're doing is taking the costs that are associated with the service departments and allocating them to manufacturing departments. If we allocate back to the daycare department we have those cost just sitting there.

[@regularbloke7410]

@@accountinghelp thanks for reply

[@roobanrai2025]

hi,dont we have to allocate the service costs based on the highest percentage or something??

[@accountinghelp]

Some textbooks do require that for this method, but it does not always have to be that way.

[@salomluvinga8850]

Very good question