Removing the computational burden from reciprocal cost allocations

Abstract This paper refutes the prevalent textbook notion that the reciprocal method of allocating service center costs is too difficult, elaborate, and costly. It presents a compact BASIC program capable of solving large problems even on a hand-held microcomputer; the program is self-contained, performing all matrix operations internally. After a brief discussion of the merits of the reciprocal method and the pitfalls of surrogate methods, an example is solved. Matrix notation is avoided to maintain accessibility for less advanced students