Purchase Solution

Revenue Centre Step Down Method

Not what you're looking for?

Ask Custom Question

Using the following example, allocate service center costs to each of the three revenue centers using the step-down method:

Costs    Square Feet      Meals      Employees

Service Centers
Maintenance       150,000 - 2,500 10
Dietary                 400,000 10,000 - 15
Administrative    600,000 20,000 2,500 10

Revenue Centers
Laboratory  600,000 30,000 2,500 20
Radiology  800,000 40,000 2,500 30
Nursing 2,000,000 100,000 30,000 50

4,550,000 200,000 40,000 135

Purchase this Solution

Solution Summary

Uses Step-down method for allocating service center costs to each of the three revenue centers.

Purchase this Solution

Free BrainMass Quizzes
Understanding the Accounting Equation

These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.

Marketing Management Philosophies Quiz

A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.

Accounting: Statement of Cash flows

This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.

Organizational Leadership Quiz

This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.

Business Processes

This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.