DEMO: Step-Down Cost Allocation in Multiple Steps

February 22, 2022

Proper cost allocation from the cost center (e.g., Administration where costs incur) to a profit center (e.g., Sales where profit is generated) is a crucial accounting task. The step-down cost allocation demo will illustrate how to use a step-down method in multiple steps to allocate general expenses to profit centers. In the second step, costs will be allocated to individual products, enabling a detailed profitability analysis on the product level.