Step Method Definition:

The allocation of a service department’s costs to other service departments, as well as to operating departments, in a sequential manner. The sequence starts with the service department that provides the greatest amount of service to other departments.

Other Related Accounting Articles:

• Direct method Cost of Allocation Definition
• Service Department Definition
• Retainer Fee Approach Definition
• Operating Department Definition
• Reciprocal Method Definition
• Reconciliation Method Definition
• Offensive Competitive Strategy
• Indirect Method of Cash Flow Definition
• Cost of Credit
• High-Low Method