The step down method allocates support department costs, one department at a time, to remaining support departments and operating departments in a cascading manner until all support department costs have been allocated.

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The step down method, also known as the sequential allocation method, allocates support department costs to other support and operating departments in a sequential manner, starting with the support department that provides the most services to other support departments and ending with the department that provides the least, until all support department costs have been fully allocated.

The Step Down Method Allocates Support Department Costs, One Department