The step-down method sequence of allocations begins with the service department that renders the greatest service to the greatest number of service departments.

Question

Quizplus · Accepted Answer

The step-down method sequence of allocations does indeed start with the service department that provides the most service to the most other service departments. This department is known as the primary service department. After it has been allocated costs, the next primary service department is determined and allocated costs, and so on until all departments have been allocated their appropriate amounts.

The Step-Down Method Sequence of Allocations Begins with the Service