Ebooks, an online book retailer has to operating scope and compound marketing operations independently E-booksnumber of employees te wat cand promote wote wa There states the reciprocal method is conceptually the most delle you The data wewe m Click the icon to view the dots) Che conduction du em Click the icon to view the step down location data) Bed Requirement 1. Describe se key features of the reciprocal method The reciprocal allocation method explicky dudes et service provided ning seperti permet de ce hop Requirement 2. Allocate the wpport din costumes and women who Before we can alocate the support division cost the two per i diviso in modo conto che portants (information systems). So hat you may come alocation of the portion costs and to HR- IS Now alocate the support divisions costs (human resources and not to the transition mah the nearest wodowe Use protsesside by Scoot C Na Human Resources Information Systems Corporate Consumer Total Costs incurred Allocation of human resources costs Allocation of information systems costs Total budgeted costs of operating divisions Requirement 3. In the case presented in this exercise, which method (direct, step down, or reciprocat) would you recommend? Why? A. The step-down method because it is more accurate than the other two methods when there are mutual relationships among support departe departments cost allocation B. The step-down method because it ranks support departments in the order that the allocation is to proceed and partially recognizes the mutua OC. The direct method because it is easy to compute and understand and being precise is not necessary D. The reciprocal method because it is easy to compute and understand and being precise is not necessary Support Divisions Human Information Resources Systems Operating Divisions Corporate Consumer Sales Sales 5 80,000 $ 233,000 5 993,000 $ 482,000 Budgeted costs incurred before any interdivision cost allocations Support work supplied by human resources division Budgeted number of employees Support work supplied by information systems division Budgeted processing time in minutes) 25 41 29 330 1.930 1,600 Print Done Costs incurred Allocation of HR costs Allocation of into systems costs Total budgeted costs of operating divisions Support Divisions Operating Divisions HR Info. Systems Corporate Consumer Total $ 80,000 $ 233,000 993,000 $ 482,000 5 1,788,000 (80,000) 46,857 33.143 (233,000) 127,391 105,609 $ 05 0 $ 1,167 248 5 620 752 5 1.788.000 Print Done asy to compute and understand and heina non Support Divisions Operating Divisions HR Info Systems Corporate Consumer Total Costs incurred $ 80,000 $ 233,000 5 993,000 $ 482.000 $ 1.788,000 Allocation of HR costs (80,000) 21.053 34,526 24.421 $ 0 254,053 Allocation of info systems costs (254,053) 138,901 115,152 Total budgeted costs of operating divisions 0 $ 1.166,4275 621 573 5 1,788.000 "Proportions for services provided to other support divisiona: HR 0 26316, IS 0 08549 Print Done Ebooks, an online book retailer has to operating scope and compound marketing operations independently E-booksnumber of employees te wat cand promote wote wa There states the reciprocal method is conceptually the most delle you The data wewe m Click the icon to view the dots) Che conduction du em Click the icon to view the step down location data) Bed Requirement 1. Describe se key features of the reciprocal method The reciprocal allocation method explicky dudes et service provided ning seperti permet de ce hop Requirement 2. Allocate the wpport din costumes and women who Before we can alocate the support division cost the two per i diviso in modo conto che portants (information systems). So hat you may come alocation of the portion costs and to HR- IS Now alocate the support divisions costs (human resources and not to the transition mah the nearest wodowe Use protsesside by Scoot C Na Human Resources Information Systems Corporate Consumer Total Costs incurred Allocation of human resources costs Allocation of information systems costs Total budgeted costs of operating divisions Requirement 3. In the case presented in this exercise, which method (direct, step down, or reciprocat) would you recommend? Why? A. The step-down method because it is more accurate than the other two methods when there are mutual relationships among support departe departments cost allocation B. The step-down method because it ranks support departments in the order that the allocation is to proceed and partially recognizes the mutua OC. The direct method because it is easy to compute and understand and being precise is not necessary D. The reciprocal method because it is easy to compute and understand and being precise is not necessary Support Divisions Human Information Resources Systems Operating Divisions Corporate Consumer Sales Sales 5 80,000 $ 233,000 5 993,000 $ 482,000 Budgeted costs incurred before any interdivision cost allocations Support work supplied by human resources division Budgeted number of employees Support work supplied by information systems division Budgeted processing time in minutes) 25 41 29 330 1.930 1,600 Print Done Costs incurred Allocation of HR costs Allocation of into systems costs Total budgeted costs of operating divisions Support Divisions Operating Divisions HR Info. Systems Corporate Consumer Total $ 80,000 $ 233,000 993,000 $ 482,000 5 1,788,000 (80,000) 46,857 33.143 (233,000) 127,391 105,609 $ 05 0 $ 1,167 248 5 620 752 5 1.788.000 Print Done asy to compute and understand and heina non Support Divisions Operating Divisions HR Info Systems Corporate Consumer Total Costs incurred $ 80,000 $ 233,000 5 993,000 $ 482.000 $ 1.788,000 Allocation of HR costs (80,000) 21.053 34,526 24.421 $ 0 254,053 Allocation of info systems costs (254,053) 138,901 115,152 Total budgeted costs of operating divisions 0 $ 1.166,4275 621 573 5 1,788.000 "Proportions for services provided to other support divisiona: HR 0 26316, IS 0 08549 Print Done