The department which provides the least amount of services to other support departments should be allocated first in the step down method.

Question

Quizplus · Accepted Answer

In the step-down method of allocating costs, the department that provides the most services to other departments is typically allocated first, not the one that provides the least. This allows for a more accurate distribution of service department costs to the producing departments.

The Department Which Provides the Least Amount of Services to Other