Chapter 15 Allocation of

Support- Department Costs,

Oleh Ade Hanifa Putri

Support (service) department—provides the services that assist other Operating (production)
internal departments (operating departments and other support department—directly adds value
departments) in the company. Some examples of service departments to a product or service. Producing
include purchasing, receiving and storage, engineering, power, departments convert raw, or
maintenance, packing, shipping, inventory control, inspection and direct materials into finished
quality control. Service department costs must be assigned (applied, products
allocated, or traced) to the inventory for product costing purposes

How a company allocates its overhead and internal support costs (costs related to
marketing, advertising, and other internal services)?
There are three methods we can use
for the allocations:
1. Direct Method— mengalokasikan biaya yang dianggarkan setiap
departemen dukungan hanya untuk departemen operasi. Tidak ada
alokasi untuk departemen pendukung lainnya.
2. Step-Down Method — mengalokasikan biaya departemen pendukung
ke departemen pendukung lainnya dan ke departemen operasi secara
berurutan yang sebagian mengakui layanan timbal balik yang
disediakan di antara semua departemen dukungan.
3. Reciprocal Method— mengalokasikan biaya departemen pendukung
ke departemen operasi dengan sepenuhnya mengakui layanan timbal
balik yang disediakan di antara semua departemen pendukung.