Step-ladder method | Explanation & example calculation
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The step-ladder method, also known as the step-ladder system, step-by-step method, or staircase method, is another method of internal cost allocation and belongs to the category of non-exact methods.
The idea behind this method is to organize cost centers in such a way that, ideally, each cost center provides services to the next cost center but does not itself receive services from downstream cost centers.
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