Cost Management and Control Will Enhance Your Ability to
ACCOMPLISH YOUR MISSION 
Whether Your Mission is:
  Governmental
  Business or
  Personal

Most large organizations have multiple pools of cost to allocate to multiple cost objects. There are three methods of allocation

Step down allocation is an alternative to direct, simple allocation. It adds some, but not all, overhead to overhead allocations and is use

Reciprocal allocation attempts to consider all possible consumption and allocates each overhead cost pool to all other pools, cost objects,

Cost accounting is sometimes hard to define because it means different things to different people. So let’s differentiate and define two br