7. As a cost & management accountant you have to calculate 3 (direct, step-down, and reciprocal) methods and what choice you make for the cost allocation method among these 3 methods in your company and why; direct, step- down, and reciprocal? Justify each method in what conditions it works? (Answer page 10,11&12 10) (Marks 6) Support maintenance 520000 5000 Direct costs Salaries Supplies Allocation base volumes Square metres Employees Administration S40000 5000 Operating books $50000 15 000 Other media $70 000 Total $180 000 50 000 500 500 1 1 200 2 300 1 2 500 5