Service Cost Allocation Using Direct Method

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  • เผยแพร่เมื่อ 25 ส.ค. 2024

ความคิดเห็น • 349

  • @FranceskaFollero
    @FranceskaFollero 17 ชั่วโมงที่ผ่านมา

    I was initially confused, but after watching the video a second time, I understood the concepts better. I learned how to perform service cost allocation using the direct method. While I also discovered that there are three methods for service cost allocation-direct, step, and algebraic method. Thank you, Sir A! ❤

  • @allisonfaithcovero6336
    @allisonfaithcovero6336 2 ปีที่แล้ว

    Rewatched this a month ago before our deptals. Thank you, Sir!

  • @etthiabearyllebustillo923
    @etthiabearyllebustillo923 2 ปีที่แล้ว

    After watching the video, I learned that there are three ways to allocate service cost and one of them is the Direct Method. Direct method is the simplest way among the three. I also learned that service department exist to assist the other departments and without them the operating segments cannot move or function properly. Thank you, Sir A!

  • @jhoebrobertgrabillo7634
    @jhoebrobertgrabillo7634 ปีที่แล้ว

    I learned from this lecture that businesses that produce things also have what are known as service departments. This department is there to support other departments, such as the production-oriented department. I discovered that the manufacturing department's overhead cost is calculated by allocating the expenditures incurred in the service department among them. I appreciate it, Sir A!

  • @micaellaramos5008
    @micaellaramos5008 ปีที่แล้ว

    I discovered how to assign service costs utilizing the direct method from this video presentation. The concepts were clearly taught, and I could understand how the calculations worked. I discovered that the production department's overhead cost is calculated by allocating the expenditures incurred in the service department among them. Thank you, Sir A!

  • @cindymaeapelo4673
    @cindymaeapelo4673 ปีที่แล้ว

    Through this video, I learned that service departments exist to assist the operating or producing departments that's why they are necessary and it is significant to allocate their costs. There are three methods to do that and this video tackles the direct method. Now I know that the direct method allocates costs to operating departments directly, with no allocations to other departments. Although the method is simple to use, it is said to be less accurate as it fails to take into account the fact that different service departments depend on one another for support. Thank you, sir A!

  • @mickcarlolim6246
    @mickcarlolim6246 ปีที่แล้ว

    The concepts of service cost allocation have been introduced to us. I have learned the paramountcy of understanding service cost allocation, especially in maintaining the working conditions of the materials and operating machines. Thank you, Sir A!

  • @merantejudilyna.8641
    @merantejudilyna.8641 ปีที่แล้ว

    After watching this video, I learned that the service department's main function is to support the operating or producing departments. I also learned that there are three different ways to allocate service costs: the step method, the algebraic method, and the direct method, which is what the video concentrates on. The sample transaction is really beneficial for comprehending the lesson. Thank you, Sir A.

  • @amai.a
    @amai.a ปีที่แล้ว

    This lecture video made me realize the importance of allocatin service costs on service department since technically, they still play a role in producing products indirectly. I learned that there are three methods (direct, step method, and algebraic) and it focuses on direct method of allocating service cost. It's easy to understand how do we allocate its cost using this method. Thank you, Sir A!

  • @genekliomariposa9646
    @genekliomariposa9646 ปีที่แล้ว

    Through the video lecture, I learned that service cost allocation exists to support or assist other departments or the operating or producing department. Service cost allocation using the direct method is the most simple method used in service cost allocation. Here, each service department, such as cafeteria and maintenance, is directly allocated to the producing departments, such as assembly and finishing. Thank you, Sir A!

  • @luisnatashaalvarado2639
    @luisnatashaalvarado2639 ปีที่แล้ว

    I learned to allocate the service cost to the departments based on their cost drivers. Thank you for the informative discussion sir A!

  • @rodguilas9542
    @rodguilas9542 ปีที่แล้ว

    We have been told about the ideas behind service cost allocation. I've learned how important it is to understand how service costs are divided, especially when it comes to keeping materials in good shape and running machines. Thanks Sir A!

  • @jacobieeee
    @jacobieeee ปีที่แล้ว

    This video taught me that service overhead goes down to departmental manufacturing overhead. This video taught me the computation and now I know how to solve the manufacturing overhead rate. Thank you sir a!

  • @mariavirginiaviray9867
    @mariavirginiaviray9867 ปีที่แล้ว

    I learned that the service departments, which comprise the maintenance and other departments, are necessary for the operating and producing departments to operate. It is essential that our service department's costs do not adversely affect the production segments, thus they must be apportioned. I'll add that the service department's costs for direct labor will be split between the operating and producing departments in accordance with some predetermined method. Thanks to the aforementioned illustration, example, and solutions, I can understand it better now. Very much appreciated, Sir A!

  • @jovelynvillaalonzo8718
    @jovelynvillaalonzo8718 ปีที่แล้ว

    I discovered after watching this video lesson that while service costs are regarded as overhead expenses, they should also be allocated. Service charges are also there to help and support the producing and running divisions. The direct technique, the step method, and the algebraic method are the additional three methods for allocating service expenses. The direct method is the most straightforward of all three approaches. Thank you, sir A!

  • @markanthonymanapol6567
    @markanthonymanapol6567 ปีที่แล้ว

    This lesson introduced me to a new concept, which is service cost allocation. Here I learned that there are three methods for allocating the service cost-the direct method, the step method, and the algebraic method. Additionally, I was also able to follow how to do the computation using the direct method. Thank you, Sir A.

  • @camilledeguzman9314
    @camilledeguzman9314 ปีที่แล้ว

    In this video, I learned how to allocate the service cost using the direct method. Direct method is said to be the simplest among the 3 methods of allocating service department cost. The service department support the other department of the company so it is also necessary to allocate its cost. The illustration is explained well by the professor so it became easier for me to understand this method. Thank you for this lesson, Sir A!

  • @christinenicolealoba3818
    @christinenicolealoba3818 ปีที่แล้ว

    With this video lecture, I have learned that there are 3 methods in getting the Service Cost Allocation: 1) Direct Method, 2) Step/Sequential Method, and 3) Algebraic/Simultaneous Method. Since the Service Cost is an indirect cost or simply a component of the Overhead, there is a cost driver used to determine the OH Rate (predetermined OH Rate)-it may be either based on machine hours or direct labor hours and/or both cost drivers are used in a specific department, and it varies (just like from the given scenario above). Thank you, Sir A!:)
    Aloba, Christine Nicole M.
    BSMA 2-3

  • @andreacabasan7883
    @andreacabasan7883 2 ปีที่แล้ว

    In this video, I learned how to allocate service costs using direct methods this method is easy to understand. And I also learned that some departments exist to support another department. Thank you, Sir A!

  • @voncrisshaneescalona3368
    @voncrisshaneescalona3368 ปีที่แล้ว

    The three methods of allocating service department costs-the direct method, the step method, and the algebraic method-are what I discovered after watching the video lecture. I was able to quickly learn about the direct method in this video. Thanks Sir A!

  • @joannaibatuan3907
    @joannaibatuan3907 ปีที่แล้ว

    I have come to understand that the Direct way of applying service costs appears to be the simplest. I also learned that the service department is vital to the company since it aids the operational and manufacturing departments. Thank you, sir!

  • @najaahgarcia
    @najaahgarcia ปีที่แล้ว

    Service Cost Allocation refers to the allocation of cost in the different service departments such as cafeteria and maintenance. There are three methods mentioned in allocating such cost namely the Direct method, Step method, and Algebraic method. This video lecture, however, centered itself on the simplest method of the three which is the Direct method. The use of the table to illustrate its solution and overall flow has been a great help, kudos to Sir A for this video lecture!

  • @bambycabauatan7799
    @bambycabauatan7799 ปีที่แล้ว

    Thank you for providing this video, Sir. A! This lecture introduced the term "service cost allocation," which refers to the additional costs that service departments incur over the course of a period, and which are taken into account since they complement the production department. The three methods included by service cost allocation are direct method, step or sequential method, and algebraic method. The direct method, the simplest of the three, was the focus of this lecture. The direct method entails merely allocating the cost to the producing department. Again, thank you Sir. A, for the clear layout of the visual aid, which is usually useful in comprehending computations!

  • @beamariebuiza3008
    @beamariebuiza3008 2 ปีที่แล้ว

    Finished watching this for our midterm exams. Thank you, sir!

  • @justinepaulpatulay2528
    @justinepaulpatulay2528 2 ปีที่แล้ว

    Thank you for this, Sir A! Rewatching for the exams.

  • @vinluanjoygenesism.6058
    @vinluanjoygenesism.6058 ปีที่แล้ว

    After watching this video lecture, like any other student, I learned that departments do exist to support other departments. It is given that without one piece in a puzzle it wouldn't be complete so without the other department, it will be difficult to function as a company. I love that this video lecture gives light on the importance of "other departments" in a company. The service dept. is necessary to operating dept., the reason why allocating service costs is important too. Lastly, I learned that there are three methods in service cost allocation, in this vid lec, as mentioned and discussed here, the easiest method is direct. Thank you, Sir A.

  • @jennethtimario8048
    @jennethtimario8048 ปีที่แล้ว

    Upon watching this video, I have learned the lesson about service cost allocation. There are three methods but, in this video, we only focused on the Direct method. This is such a clear discussion po. Thank you po for this lesson, Sir A!

  • @venturarosemariemae1901
    @venturarosemariemae1901 ปีที่แล้ว

    After watching the video lecture, I learned that there are three methods of allocating service department costs which consist of Direct Method, Step method, and Algebraic Method. This video is about Direct method, the simplest of the three. The concept of it is to Allocate the overhead cost from the service department into Producing Departments. After Allocating it the overhead cost from service department will be zero. Thank you, Sir A, for explaining it thoroughly and concisely.

  • @jamorajessica625
    @jamorajessica625 ปีที่แล้ว

    Service cost allocation exists to support the other departments in their operation. There are different methods in allocating service cost, but this video focused on the direct method. Direct method is the simplest among the three since they directly allocate cost to producing departments. Thank you for this comprehensive lecture, Sir.

  • @ysra_23
    @ysra_23 ปีที่แล้ว

    In this video lecture, I learned about allocating service costs using the direct method and its purpose. It was discussed that the service department exists to support and be the backup of the main departments. Hence, the company should allocate also the service costs. The illustration helps me to understand and makes me easily comprehend the computation using the direct method. The accounts that have been allocated using the basis from the given data will be zeroed out and closed account. Thank you, Sir A!

  • @johnrossnerona9413
    @johnrossnerona9413 2 ปีที่แล้ว

    Another wonderful video lecture discussion, Thank you Sir A 🔥

  • @amyjavier1112
    @amyjavier1112 2 ปีที่แล้ว

    Thank you Sir A for the lecture! Watched it during our asynchronous classes. Very informative and helpful especially during the midterms week and been able to pass the exam! More power and God bless, sir!

  • @vanessamaemadronero9305
    @vanessamaemadronero9305 2 ปีที่แล้ว

    I learned that there are different methods to use in allocating overhead. The Direct method of service cost application seems to be the easiest. I also learned that the service department is crucial in the business because it assists the operating and producing departments. Thank you, sir!

  • @aikakoshimae3009
    @aikakoshimae3009 ปีที่แล้ว

    In this video lecture, I learned about one of the methods of allocating service cost wherein the overhead rate was computed using the direct method. Apart from that, I learned that I must really be careful and analytical with the information given to ensure the correctness of my answers. Thank you, Sir!

  • @aurorapaulabade350
    @aurorapaulabade350 ปีที่แล้ว

    I learned a new topic in this video called service cost allocation. I discovered that there are three approaches to allocating the cost of the service which are the direct method, the step method, and the algebraic method. Thank you, Sir A!

  • @mariajoycee
    @mariajoycee ปีที่แล้ว

    In this video, it focuses on allocation of service cost using direct method which is the most basic way. It was a thorough and clear explanation on how to allocate the service cost. Its purpose is supporting departments to zero out the OH cost. Thank you sir A.

  • @maryperzlentereso2088
    @maryperzlentereso2088 ปีที่แล้ว

    In this lecture video, I learned that service cost is allocated to the manufacturing overhead since it is not directly related to production. The service costs are first added to the overhead costs before getting the predetermined overhead rate. Thank you for another informative lecture video, Sir A!

  • @katrinacutanda904
    @katrinacutanda904 ปีที่แล้ว

    The service department acts as support to other departments. Thus, there are three methods for service cost allocation, namely: direct method, sequential, and algebraic. Direct method is, by far, the simplest method of the three.
    Thank you for this video lecture, Sir A!

  • @jaderogelio9439
    @jaderogelio9439 2 ปีที่แล้ว

    done watching this vid a week before midterms, thank you so much sir!

  • @jessaherrera762
    @jessaherrera762 ปีที่แล้ว

    This video is all about the technique for charging the cost of service departments to other parts of a business. The direct method transfers the cost of a service department directly to the production departments that rely on the services. Thank you, sir.

  • @pinedareneekyrstel7259
    @pinedareneekyrstel7259 ปีที่แล้ว

    I learned that other departments exist to support a department, such as maintenance and cafeteria under the service dept. And one of the methods to allocate the service cost is called Direct Method. In this method, the dept OH costs will be carried over, while the cafeteria and maintenance costs should be zeroed out and distributed to producing department. I also learned how important to know the cost driver of each department to arrive at the correct costs. Thank you for this lecture video, Sir A!

  • @garciaronalynnavarro8373
    @garciaronalynnavarro8373 ปีที่แล้ว

    The video lecture was comprehensive and I was able to analyze the computation because of the brief yet fruitful discussion with Prof A. Thanks again po!

  • @elivermatthewgabrielo.8632
    @elivermatthewgabrielo.8632 2 ปีที่แล้ว

    Done watching this several weeks ago. Thanks again sir!

  • @pmaureenvv
    @pmaureenvv ปีที่แล้ว

    In this video lecture, I learned the purpose and importance of allocating service costs and how it is done using direct method. I can understand now why it is the simplest method to be used for I was able to understand it right away. Thank you for this lecture, Sir A!

  • @kristineallyssacesario1000
    @kristineallyssacesario1000 ปีที่แล้ว

    Done watching for preparation for examination. Thank u sir

  • @abegielkayeacademia721
    @abegielkayeacademia721 ปีที่แล้ว

    My takeaways are learning that there are three methods of allocating service costs: Direct, Step, and Algebraic Methods, and the importance of Service Costs in companies that support the operational or producing departments. In this video lecture, I learned how service costs are allocated using the Direct Method first. Thank you for this video, Sir A!

  • @guiachristellevalentin808
    @guiachristellevalentin808 2 ปีที่แล้ว

    Thank you for this video lecture sir.

  • @franzinekhatemontilla9902
    @franzinekhatemontilla9902 ปีที่แล้ว

    Through this video lecture, I learned that the service departments exists to assists the other departments and they are necessary to the whole operation of the business. The costs in service department are classified under the overhead costs and there are three methods used which are direct method, step method, and algebraic method. Direct method simply means that the costs of the service department is allocated to the producing department directly. When computing for the amounts allocated to producing departments from the service departments, we must be careful on the bases that will be used because the bases differs from one department to another. Thank you po, Sir A!

  • @NicoleMaeMJunio
    @NicoleMaeMJunio ปีที่แล้ว

    Service cost allocation is the process of allocating the overhead costs of a supporting department to a producing department to zero out the overhead of the service department. The topics were well explained, and I was able to follow the process of computation. Thank you for this video, Sir A!

  • @laizamendoza5644
    @laizamendoza5644 2 ปีที่แล้ว

    Done watching sir A. Thank you for a very clear and concise explanation!

  • @karylleromero5731
    @karylleromero5731 2 ปีที่แล้ว

    Done watching this video a couple of months ago but re-watching for our incoming finals. Very informative. Thank you so much po, Sir!

  • @sheilajoyjuarez8902
    @sheilajoyjuarez8902 2 ปีที่แล้ว

    Thank you for the detailed explanation of service cost allocation using the direct method. I learned that there are three methods of allocating service costs and the Direct method is the simplest method. This lecture is very helpful for us to have a better understanding of the discussion.

  • @preciousdabac2757
    @preciousdabac2757 ปีที่แล้ว

    I learned the direct method of service cost allocation in this video. We have two producing departments in this part. With this lecture, I was able to understand how to obtain the overhead rate. I discovered that service charges are categorized as overhead expenses because they are unrelated to manufacturing costs. The step method, the algebraic method, and the direct method are three ways to divide the cost of a service. The ideas were explained simply, and I could see how the computations were done. Thank you, Sir A!

  • @jennicaduenas999
    @jennicaduenas999 2 ปีที่แล้ว

    Finished the videos before our departmental exam. Thank you so much, Sir!!

  • @eunieviaamantoy9730
    @eunieviaamantoy9730 ปีที่แล้ว

    This lecture taught me the importance of cost allocation in service costs. There are three methods to compute or allocate it: the direct method, the step-method, and the algebraic method. ty sir!💜

  • @ariannemaec.buenviaje9456
    @ariannemaec.buenviaje9456 ปีที่แล้ว

    I learned in this video that the departments that exist to supports other department are called service departments within the manufacturing company, they are really important for the operation of the company. Allocation of the cost incurred in service departments is can be done in three method, direct, step, and algebraic method. Direct method is the simplest in the three, in this method, you're just going to allocate the cost directly to producing department. This video is helpful, thank you sir A.

  • @eryka_
    @eryka_ ปีที่แล้ว

    Through this video, I learned that service charges are part of the overhead expenses since they are not related to production cost. I also learned the different methods that can be used to allocate a service cost which are the step method, algebraic method, and direct method. I was able to understand how the compute it. Thank you, Sir A!

  • @anneclareesepagsanjan6531
    @anneclareesepagsanjan6531 2 ปีที่แล้ว

    Rewatched this last night. Very helpful po, Sir!

  • @rhaynmaeerezo941
    @rhaynmaeerezo941 ปีที่แล้ว

    I learned that since service charges are unrelated to production costs, they are classified as overhead expenses. Moreover, there are three ways to allocate the cost of a service: the step method, the algebraic method, and the direct method. The concepts were clearly taught, and I could understand how the calculations worked. Thank u, Sir A!

  • @Angelica-dk8mp
    @Angelica-dk8mp ปีที่แล้ว

    Service Cost Allocation refers to allocating the costs of a service or supporting department to zero out its OH costs. This type of department usually aids the producing department. One of the methods, Direct Method, was used in this video. The discussion, as expected, is smooth as always. Thank you, Sir A!

  • @genesismeneses3776
    @genesismeneses3776 2 ปีที่แล้ว

    Wow. Nice Lecture. Reviewing my knowledge this academic break!

  • @daniellatolentino8783
    @daniellatolentino8783 ปีที่แล้ว

    Upon watching this vidlec, I have learned that there are three methods commonly used to allocate support costs: (1) the direct method; (2) the sequential (or step) method; and (3) the algebraic and simultaneous method. In this vidlec, it tackles the simplest method which is the direct method on which it allocates costs to the operating departments directly, with no allocations to the other service departments. Thank you for explanation Sir!

  • @danielplacio2100
    @danielplacio2100 ปีที่แล้ว

    In this video lecture, I have learned that departments are created to assist other departments. There are three methods of allocating service department costs, and in the video, it is mentioned that the first one is the direct method. Thank you, Sir A!

  • @lorenzojohnbenedictm.8121
    @lorenzojohnbenedictm.8121 2 ปีที่แล้ว

    Watched this before answering the problem set. Thank you sir!

  • @charlesdulce4485
    @charlesdulce4485 2 ปีที่แล้ว

    Done watching Sir. A. Thank you for explaining the solutions well!

  • @kensheereiramirez8750
    @kensheereiramirez8750 ปีที่แล้ว

    I was able to discover the purpose of the Service Department in this video lecture, which is to assist and support the Operating or Producing Departments. In this lesson, the concepts of service cost allocation have also been addressed. I appreciate you, Sir A, for providing the examples, it helped in my understanding of the subject.

  • @yvessese1703
    @yvessese1703 ปีที่แล้ว

    In this lecture, I learned how to allocate service cost using direct method. I learned the purpose of the service department --- to support the operating or producing departments. I also learned that there are three methods to allocate service cost. In direct method, I learned that the service department must be zero out first and their cost will be allocated to the producing department. The illustration as well as the formulas helped me understand the process well.

  • @blessiriedavis5297
    @blessiriedavis5297 2 ปีที่แล้ว

    I've already watched this during our week five class po. Thankyou, Sir A.

  • @shamiraleanneperez2251
    @shamiraleanneperez2251 2 ปีที่แล้ว

    Thank you for the informative lecture po Prof A.! I already watched this during our week 5 class and review for midterms exam. Thank you po again!

  • @ma.jenellestarita7734
    @ma.jenellestarita7734 ปีที่แล้ว

    In this video lecture, I have learned how to compute the Service Cost Allocation using the direct method. Wherein we are going to allocate the overhead cost from the service department to production. And after allocating, the service department will be zero, same with the maintenance. And I learned the different computations in service cost allocation problem. Thank you, Sir A!

  • @delpilarfeic.3185
    @delpilarfeic.3185 ปีที่แล้ว

    Some departments exist to support other departments. That is the case of service departments intended for the producing department in this video. Because of that, service department costs are treated as a part of the overhead costs of the producing department. There are three methods of service cost allocation and the direct method is illustrated in this lecture. To solve this, we use the expected OH costs of the service department and allocate them to the producing department based on the basis of allocation. For instance, the Cafeteria’s basis for allocation is the number of employees and the Maintenance’s basis is the estimated factory overhead. Thank you for this, Sir A!

  • @jeralynposadas496
    @jeralynposadas496 2 ปีที่แล้ว

    Done watching, Sir A! Thank you for this lecture.

  • @balderamanicole699
    @balderamanicole699 ปีที่แล้ว

    In this video lecture I learned about the service cost allocation using the Direct Method. The main concept in this lecture is that we will allocate the OH cost of the service departments to the producing departments. This allocation will zero out the OH cost of service depts. Then you will add all the OH cost allocated and the OH cost of the producing segment, the sum will be divided to the cost driver to get the OH rate.
    It is indeed simple to understand. Thank you, Sir A, for sharing this with us :)

  • @lotogaileangelicah.4650
    @lotogaileangelicah.4650 ปีที่แล้ว

    After watching the video, I learned that Service Cost Allocation facilitates the management of a department's workplace and resources. The first method described in the video lecture is the direct method of service allocation, which involves assigning service department costs to production department costs. The direct method transfers the costs of a service department directly to the producing departments that utilize the department's services. It also delivers more precise and enhances resource use decisions. Sir A discussed the topics clearly, and I understood the computing process; nonetheless, I will rewatch this lecture to thoroughly comprehend the concepts and details of this topic. Thank you, Sir A!

  • @joyceannfigueroa4942
    @joyceannfigueroa4942 ปีที่แล้ว

    Thank you for a comprehensive discussion Sir A! learned that there are three methods to compute allocate service costs and this video lecture discussed one of the method which is the direct method. The illustration helps me to understand and makes me easily comprehend the computation using the direct method.

  • @jhonrickjanapin5196
    @jhonrickjanapin5196 2 ปีที่แล้ว

    In this video lecture, I learned that the direct method is the simplest method among the three for allocating service department costs. The three methods are direct, step, and algebraic. A service department exists to assist the operating department or producing department. Thank you sir, for this video lecture.

  • @jiewellmariemiranda9229
    @jiewellmariemiranda9229 ปีที่แล้ว

    Service cost allocation concept talks about allocating OH cost of service to producing to zero out the corresponding amounts. It is important to acknowledge these costs because they are still relevant and serves as support to the whole operation of the company. There are three types of service cost allocation which are direct, step method, and algebraic method but the focus of this lesson is all about direct. Allocating the OH service cost using direct method is simply pro-rating est. dept OH of service costs to specified basis of the problem. (ex. cafeteria to # of employees) Thank you Sir A for the explanation!

  • @maryjessecalial8650
    @maryjessecalial8650 ปีที่แล้ว

    I learned that there are three methods in computing the Service Cost Allocation, in this video we are focusing on the Direct method. Direct method is said to be the simplest way. From the name itself, it is allocated directly to the department. Indeed, I was able to learn it easily. Thank you, Sir A!!!

  • @lisingmariellar.7595
    @lisingmariellar.7595 ปีที่แล้ว

    After watching the video lecture, I learned about the Service Cost Allocation using Direct Method. A portion of the terminology presented was familiar to me even before I saw the video because it has been discussed in previous video lectures. I also learned that there are three methods for allocating service costs: direct, step, and algebraic. The concepts were effectively explained, and I was able to understand the computation process. Thank you, Sir A!

  • @danie8220
    @danie8220 2 ปีที่แล้ว

    Thank you for a comprehensive discussion Sir A! Already watched this video lecture during our asynchronous session and in my review for midterms. May God bless you po!

  • @cjaldrincastillo4516
    @cjaldrincastillo4516 ปีที่แล้ว

    The service departments provide assistance to producing departments for the operation of the business. There is also overhead in service departments, however, they are closed and distributed to producing departments. The distribution of these overheads is proportionally distributed according to the basis or factor of the said overhead. Once they are closed to the producing departments, the same process is used in getting the overhead rate per department, which can be either based on DLH or MH. Thank you, Sir A, for the brief and informative video!

  • @iligpaulinejoye.
    @iligpaulinejoye. ปีที่แล้ว

    As I watched the video, I learned that the direct method of allocating the expense of service departments to operating departments is seen as the simplest. By utilizing a suitable allocation base, the expenditures incurred by service departments are directly allocated to operational departments rather than being split among them as in the previous technique. In other words, we can say that the service supplied by a service department to itself and to other service departments is ignored by the direct method of departmental cost allocation.
    Thank you, Sir A!

  • @shigallan
    @shigallan 2 ปีที่แล้ว

    Thank you for the informative lecture video, Sir A. I’ve already watched this during our asynch classes but forgot to post a comment as attendance. God bless you!

  • @samanthanicolejavellana7942
    @samanthanicolejavellana7942 ปีที่แล้ว

    I've learned that service cost allocation is part of the manufacturing overhead, which refers to the other expenses that service departments incur during the period, and these departments are taken into account because they support the production department. There are three methods for calculating service cost allocation, but for this video, I learned about the simplest one, which is the direct method. Service costs are simply allocated to each producing department in this method. Thank you po, Sir A!

  • @annepaulinlatayan3334
    @annepaulinlatayan3334 2 ปีที่แล้ว

    Done watching this video months ago. Thank you so much sir!!

  • @faith_cmprn
    @faith_cmprn ปีที่แล้ว

    In this video lecture, I learned the first method in service cost allocation which is Direct Method. Also, I learned the significance of service department in supporting the producing/operating department. I was able to easily understand the computation using direct method because of the example given. Thank you, Sir A!

  • @onetbautista44
    @onetbautista44 2 ปีที่แล้ว

    Thank you po Sir A! Done watching po since last 3 months.

  • @deidreijoiandaya8653
    @deidreijoiandaya8653 2 ปีที่แล้ว

    Done watching po. Thank you po Sir A for this video lecture.

  • @junairamaeramizares7162
    @junairamaeramizares7162 ปีที่แล้ว

    After watching the video lecture, I have learned that Service Department exist to support other departments, without them the other department will not function properly. There are three (3) method to allocate the service cost, the first one is using the direct method which is already tackled in this video lecture. Thank you, Sir A!

  • @pattreshiabongares9667
    @pattreshiabongares9667 2 ปีที่แล้ว

    Already done watching this months ago. Thank you po sir for this informative and concise video lecture!

  • @arboledaandriajean
    @arboledaandriajean ปีที่แล้ว

    This lecture video made me realize the significance of service departments in supporting the other departments; hence their costs should also be appropriately allocated. And here, using the direct method, their costs will be distributed in the operating departments based on some defined basis of allocation. Thank you, sir A!

  • @sophiacapistrano9647
    @sophiacapistrano9647 2 ปีที่แล้ว

    Finished watching this video lecture, thank you Sir!

  • @ivygellinejimenez1010
    @ivygellinejimenez1010 ปีที่แล้ว

    Since the service cost allocation contributes to a significant amount of departments in a business in sustaining the working conditions of personnel and materials, the aforementioned video has helped me to realize the importance of knowing it. At first, the service cost allocation using the direct method seems a little complex, but after viewing it again, I see that it is really not that difficult. I appreciate your thorough presentation, sir.

  • @cristinemaearcenio3683
    @cristinemaearcenio3683 ปีที่แล้ว

    After watching this video, I realized the significance of allocating service cost to production departments by using direct method. Service cost allocation can provide more accurate product cost information Thank you, Sir A!

  • @allyannafael.agbayani829
    @allyannafael.agbayani829 ปีที่แล้ว

    This video is new to my eyes so it is quite complicated at first but after finishing the video lecture, I learned its functions and how to compute the service cost allocation. Using this method and with the help of illustration, I quickly understand the method.

  • @chinaeyesaxekick628
    @chinaeyesaxekick628 2 ปีที่แล้ว

    already watched this last december. thank you, sir!

  • @eirinsantos1608
    @eirinsantos1608 ปีที่แล้ว

    Thank you sir! I learned that there are three methods to compute/allocate service costs, and this video lecture discussed one of the method which is the direct method. I had no idea how it works, and now I have an idea how's the computation/ how to allocate service cost using direct method. Thank you again sir!

  • @jeanesserosellemacale8677
    @jeanesserosellemacale8677 2 ปีที่แล้ว

    Thank you very much sir A. I was able to acquire the Direct technique of service cost allocation from this video lesson. There are three different ways to divide up service costs. I was able to learn more about the subjecr by using the provided illustration. Thank you sir A!

  • @claricemontallana806
    @claricemontallana806 2 ปีที่แล้ว

    I watched this last November, sir. I forgot to leave a comment. Thank you po for this comprehensive video lecture!!!

  • @rirideeexxx4921
    @rirideeexxx4921 ปีที่แล้ว

    Done watching Sir A. Thanks for fruitful discussion! In this video lecture Ive learned Service Cost Allocation use to allocate Service Cost because Service departments supports all of other departments and also incurred cost . There are 3 methods of allocating service cost. In this video lecture it discusses the first method which is Direct Method in which the simpliest and it is for charging the cost of service departments to other parts of a business. This concept is used to fully load operating departments with those overhead costs for which they are responsible. Service department cost will be allocated to the operation departments base on some define basis. In this video lecture the example used is cafeteria and maintenance in which supports the operation departments.