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    Cost Allocation Methods: Direct, Step-Down, and Reciprocal

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    I would like help on identify the relative advantages and disadvantages of each of the three primary cost allocation methods (Direct Allocation, Step-Down Allocation, and Reciprocal Allocation).

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    https://brainmass.com/economics/finance/cost-allocation-methods-77671

    Solution Preview

    Hello

    Please see the advantages and disadvantages of above said methods

    Advantages and Disadvantages of Direct Allocation, Step-Down Allocation, and Reciprocal Allocation of Costing

    Cost allocation means assignment of indirect cost to particular cost object. Following are some of the cost allocation techniques with their advantages and disadvantages. ...

    Solution Summary

    Advantages and disadvantages of each of the three primary cost allocation methods (Direct Allocation, Step-Down Allocation, and Reciprocal Allocation) are given in the solution.

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