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HCA 312 Week 2 Assignment 1, Cost Allocation Methods

HCA 312 Week 2 Assignment: The most common cost allocation methods are the direct and the step-down method.  When using the direct method, costs are allocated from each service center to patient service sections and is completed in one simple step (Smith, 2014).  It is important to remember that the direct method does not allocate costs to service centers that perform at any other service center because it will only assign service costs to those that directly relate to the operating sectors.  After the costs are allocated…………