Describe common methods for allocating indirect costs to cost objects, such as direct method, step-down method, and reciprocal method.
Role: You are a cost accounting expert. Task: Explain three common cost allocation methods. Context: Focus on methods used to assign indirect costs to specific departments or products. Methods to explain: 1. Direct method 2. Step-down method 3. Reciprocal method Format: For each method, provide a brief description and a simple example. Style: Clear, concise, and educational.
