Retainer Fee Approach Definition:

A method of allocating service department costs in which other departments are charged a flat amount each period regardless of usage of the service involved.

Other Related Accounting Articles:

• Step Method Definition
• Direct method Cost of Allocation Definition
• Reciprocal Method Definition
• Service Department Definition
• Quantitative Approach Definition
• Contribution Approach Definition
• Reciprocal Services Definition
• Interdepartmental Services Definition
• Specific Cost Method Definition
• Contingency Approach Definition