Revenue Centre Step Down Method
Not what you're looking for?
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
SWOT
This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.
Motivation
This tests some key elements of major motivation theories.
Organizational Leadership Quiz
This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.
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.
Cost Concepts: Analyzing Costs in Managerial Accounting
This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.