Journal of

Marketing Development and Competitiveness

Scholar Gateway

Abstracts prior to volume 5(1) have been archived!

Issue 5(1), October 2010 -- Paper Abstracts

Girard  (p. 9-22)

Cooper (p. 23-32)

Kunz-Osborne (p. 33-41)

Coulmas-Law (p.42-46)

Stasio (p. 47-56)

Albert-Valette-Florence (p.57-63)

Zhang-Rauch (p. 64-70)

Alam-Yasin (p. 71-78)

Mattare-Monahan-Shah (p. 79-94)

Nonis-Hudson-Hunt (p. 95-106)

JOURNAL OF ACCOUNTING AND FINANCE

Reciprocal Cost Allocations for Many Support Departments

Using Spreadsheet Matrix Functions

Author(s): Dennis Togo

Citation: Dennis Togo, (2013) "Reciprocal Cost Allocations for Many Support Departments Using Spreadsheet Matrix Functions," Journal of Accounting and Finance, Vol. 13, Iss. 4, pp. 55 - 59

Article Type: Research paper

Publisher: North American Business Press

Abstract:

The reciprocal method for allocating costs of support departments is the only method that recognizes all

services provided to other departments. Yet, even as the number of support departments and their costs

increase, the adoption of the reciprocal method has been hampered since it requires solving simultaneous

equations for reciprocated costs of each support department. Matrix functions in spreadsheets will solve

for reciprocated costs of many support departments. The Sasha Case illustrates the use of matrices to

model services among support and operating departments, to solve simultaneous equations for the

reciprocated costs of support departments, and to allocate the reciprocated costs to other departments.