Overhead allocation: linear algebraic method
ID:CVLAM

Video Overview

In a manufacturing environment production departments cannot function independently, but need support from various service departments. The costs of the various service departments need to be assigned to the production departments. The traditional approach to assigning these overheads is done using one of three methods. These methods are: the direct method, the step method or the linear algebraic method. In this tutorial the linear algebraic method will be explained.