| Direct method | The allocation of a service department's costs directly to operating departments without recognizing services provided to other service departments.
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| Interdepartmental services | Services provided between service departments. Also see Reciprocal services.
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| Operating department | A department or similar unit in an organization within which the central purposes of the organization are carried out.
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| Reciprocal method | A method of allocating service department costs that gives full recognition to interdepartmental services.
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| Reciprocal services | Services provided between service departments. Also see Interdepartmental services.
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| Service department | A department that provides support or assistance to operating departments and that does not engage directly in production or in other operating activities of an organization.
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| Step method | The allocation of service department costs to other service departments, as well as to operating departments, in a sequential manner.
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