Difficulties in Learning Reciprocal Allocation Method

Abstract

The allocation of sub-departmental costs is an important process in departmental cost accounting, but it also involves the use of equations, making it a barrier for students. There is also a problem with high school education, but there is also the possibility that explanations in textbooks are omitted, making learning difficult. Therefore, we will clarify the difficulty of learning by describing the reciprocal allocation method in symbol form and showing the process of calculating manufacturing department costs by solving simultaneous equations. The numerical equivalence of continuous allocation method, simultaneous equation method, and trial and error method is also shown.