[Verse 1] In the factory where departments align Some produce goods, others serve behind HR and maintenance, power and heat Support the production that makes ends meet But how do we split up these service costs To find the true price when nothing gets lost [Chorus] Three methods to allocate and divide Direct, step, reciprocal as your guide D-S-R, remember the three Cost allocation methodology From simple to complex we climb the tree Service departments distributed properly [Verse 2] Direct method takes the simplest road Ignore the inter-service episode Allocate straight to production lines Based on usage that clearly defines Machine hours, labor hours, square feet too Direct allocation sees it through [Chorus] Three methods to allocate and divide Direct, step, reciprocal as your guide D-S-R, remember the three Cost allocation methodology From simple to complex we climb the tree Service departments distributed properly [Verse 3] Step method adds one layer more Services to services before Order matters in this sequential dance Highest cost or usage gets first chance Once allocated, no looking back Follow the predetermined track [Bridge] But what if services serve each other Power to maintenance, back and forth they bother Reciprocal method solves this puzzle Simultaneous equations in the shuffle Linear algebra finds the way True costs revealed at end of day [Chorus] Three methods to allocate and divide Direct, step, reciprocal as your guide D-S-R, remember the three Cost allocation methodology From simple to complex we climb the tree Service departments distributed properly [Outro] Choose your method, make it clear Consistency throughout the year Service costs now properly assigned To production departments refined
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