See Also: Administration Expenses Outsource Definition Advantages of PEO Services for the Business Owner Sunk Costs Joint Costs Service Department Definition Many companies require support activities as well as core activities to produce their goods and/or services. Support services, or a service department, do not contribute directly to the production of goods or the providing
Service Department Cost Allocation In accounting, allocate the costs of support service departments to the different departments within the organization that make use of those support services. There are several methods for allocating the costs of support service departments, including the two following methods: Direct method Step method allocation Step Method Allocation Using the step method
See Also: Agency Costs Make-or-Buy Business Decision Lease Agreements Lessor versus Lessee National Association of Professional Employer Organizations (NAPEO) Service Department Cost Allocation In accounting, the costs of support service departments are allocated to the different departments within the organization that make use of those support services. There are several methods for allocating the costs
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