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Dear Sir,
After watching your lectures and reading through my study book, I still do not understand the following:
When doing secondary apportionment using the step-down method, the rule is “Services that do most work should be allocated first”. How do we determine which service does the most work? I tried different examples and do not seem to understand the rationale…
Thanks in advance for your help.It does not matter which one you allocate first – the final result will be the same.
However taking the one doing the most work will make it a tiny bit quicker.What they actually mean is to take the one doing the most work for the production departments, which is the one doing the smaller percentage for the other service department.
“The smaller percentage for the other service department” – Now I understand.
Thank you very much for your help, Sir
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