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Sir ,
my understanding right or wrong,sir and how to understand the step down (as I have read and watched the work outs in open tuition )
There are 3 methods to work out reapportionment :Direct method:allocate service Center ‘s overheads to production
department only . If it is distributed in between service centres you don’t need to redistribut them again in service Center .Reciprocal reapportion method: in this you have to distribute service Center ‘s every $ to production departments using the percentage given.
Step down method: I don’t know.
Thank youAs far as the exam is concerned, step-down is reciprocal. As you will have see in the lectures, with the reciprocal method you can either keep repeating the apportionment or you can use equations – which you do in the exam does not matter because they both end up with the same answer (and it is only the final answer that is needed for the exam).
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