Direct Allocation Method
Direct allocation method is a method of allocating service department costs that ignores any service rendered one service department to another; it allocates each service departments total cost directly to the production department. This is also called direct method.
About the Author
True Tamplin, BSc, CEPF®
True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.
True contributes to his own finance dictionary, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.