6 how do we account for the self consumption of resources e g the power consumed by 4313221

6 how do we account for the self consumption of resources e g the power consumed by 4313221

6.How do we account for the self-consumption of resources (e.g., the power consumed by the Power Generation Department, or the Payroll Department processing checks for the employees in human resources) when we perform a step-down allocation?

7.Name one important difference between the reciprocal method and the step-down method.

8.Describe the dual-rate allocation method.

9.In a dual-rate allocation, what is the allocation basis for allocating capacity costs? For operating costs?

10.What is the advantage of using budgeted instead of actual costs when determining the overhead rates to employ for allocating the costs of support activities?

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