1. indirect method
  2. direct method
  3. step down method
  4. reciprocal method
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1 Answers

Answer: Option 3

Method, which allocates cost of support department to operating and support departments is known as step down method. The step method (also known as step down method) allocates the cost of a service department to other service departments as well as to operating departments. The cost allocation under step method is a sequential process.

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