The step-down method allocates support department costs to other support departments and to operating departments in a sequential manner.

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The step-down method is a type of allocation method that allocates support department costs to other support departments and to operating departments in a sequential manner based on a predetermined hierarchy or sequence of importance. This method involves allocating the costs of the most important or primary support department first before moving on to allocate the costs of the less important support departments.

The Step-Down Method Allocates Support Department Costs to Other Support