The Generalized Process for Allocating Support Department Costs Comprises Six

Short Answer

The generalized process for allocating support department costs comprises six steps, listed below in random order. In the space provided, indicate the order in which the steps should be performed (1 through 6).
____ Assign costs to cost pools.
____ Choose and apply a method for allocating support department costs to operating departments.
____ Clarify the purpose of the allocation.
____ For each support department cost pool; choose an allocation base.
____ Identify support and operating department cost pools.
____ If relevant, allocate support costs from the operating departments to units of goods or services.