Hudson Partners provides management consulting services to government and corporate clients. Hudson has two support

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Read the requirements.

for any zero balances.$)$

Data table

Requirements

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$)$

Compare and explain differences in the support$-$department costs allocated to

each operating department.

What approaches might be used to decide the sequence in which to allocate

support departments when using the step$-$down method?