2. Cost-to-charge ratio. What is the basic concept of the cost-to-charge ratio method of estim ing costs? Give an example. 3. Cost-to-charge ratio. What are the four major concerns with using the cost-to-charge rat method? 4. Step-down method. How did the step-down method of cost allocation acquire its name? 5. Cost allocation and cost drivers. What is the relationship between the concept of the cost a location basis, used in the step-down method, and the concept of the cost driver, used in activ ity-based costing (ABC)? 6. Fully allocated costs. What is the difference between a cost object's direct cost and its fully al- located cost? Give an example