Reciprocal Method for Allocating Support Costs (SHORTCUT USING LINEAR EQUATIONS)

Описание: This video shows how to use the Reciprocal Method allocate the costs of multiple support departments when the support departments provide services to each other. A shortcut for determining the amounts to be allocated is to set up a system of linear equations and solve for the amounts to be allocated from each support division (this amount will always be higher than the pre-allocation costs of each support division, because the pre-allocation amounts don't take into consideration the fact that a support department received services from another support department). A comprehensive example is provided to show how to set up the system of equations, solve the equations, and then use the results to allocate the costs appropriately.

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