Support Cost Allocation using Step Down Method

Description
This managerial accounting tutorial uses the step down method to allocate costs from support departments to revenue producing departments. It is important to REMEMBER that the overall aim is to allocate support cost to revenue producing departments.

The step down method starts to allocate the support department that provides the most support for every support department (cost dependant). So, in this tutorial, we will allocate out the cost and figure out which one to use, then start allocating!

Video length: 11:05