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ERIC Number: EJ1052923
Record Type: Journal
Publication Date: 2009
Pages: 4
Abstractor: As Provided
Reference Count: 5
ISBN: N/A
ISSN: ISSN-1942-2504
Using Excel's Matrix Operations to Facilitate Reciprocal Cost Allocations
Leese, Wallace R.; Kizirian, Tim
American Journal of Business Education, v2 n9 p55-58 2009
The reciprocal method of service department cost allocation requires linear equations to be solved simultaneously. These computations are often so complex as to cause the abandonment of the reciprocal method in favor of the less sophisticated direct or step-down methods. Here is a short example demonstrating how Excel's sometimes unknown matrix operations can be used to greatly simplify the reciprocal allocation method. Students do not need to possess a strong background in matrix algebra to use this approach.
Clute Institute. 6901 South Pierce Street Suite 239, Littleton, CO 80128. Tel: 303-904-4750; Fax: 303-978-0413; e-mail: Staff@CluteInstitute.com; Web site: http://www.cluteinstitute.com
Publication Type: Journal Articles; Reports - Descriptive
Education Level: N/A
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: N/A