Q.Write note on the step distribution method of reapportionment of overhead.

Step method: re-apportion service-department costs one at a time, in order of service, never returning to a closed department.

The step distribution (step-ladder) method of secondary distribution is used when service departments serve one another but not reciprocally in both directions to a significant extent. The steps:

1. Rank the service departments in order of the amount of service they render to other departments (the one serving the greatest number/most other departments first).
2. Apportion the first service department's overhead to all other departments (production and remaining service departments).
3. That department is then closed and never receives any further cost.
4. Repeat for the next service department, distributing to the departments still open, and so on, until only production departments remain holding all the overhead. …