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Boston Partners provides management consulting services to government and corporate clients. Boston has two support departments-administrative services (AS) and information systems (IS)-and two operating departments
Boston Partners provides management consulting services to government and corporate clients. Boston has two support departments-administrative services (AS) and information systems (IS)-and two operating departments -government consulting (GOVT) and corporate consulting (CORP). For the first quarter of 2020, Boston's cost records indicate the following: (Click the icon to view the cost records.) Read the requirements. Requirement 1a. Allocate the two support departments' costs to the two operating departments using the direct method. (Do not round intermediary calculations and round your final answers to the nearest whole dollar. Use parentheses or a minus sign when decreasing departments by allocating costs. Enter a "0" for any zero balances.) Data table Requirements 1. Allocate the two support departments' costs to the two operating departments using the following methods: a. Direct method b. Step-down method (Allocate AS first) c. Step-down method (Allocate IS first) 2. Compare and explain differences in the support-department costs allocated to each operating department. 3. What approaches might be used to decide the sequence in which to allocate support departments when using the step-down method
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