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Liberty Company has two service departments: administration and accounting, and two operating departments: domestic and international. Administration costs are allocated on the basis of employees
Liberty Company has two service departments: administration and accounting, and two operating departments: domestic and international. Administration costs are allocated on the basis of employees and accounting costs are allocated on the basis of number of transactions. A summary of Liberty operations follows: 2. Allocate the cost of the service departments to the operating departments using the step method. Start with Administration. 3. Allocate the cost of the service departments to the operating departments using the reciprocal method. 4. Explain the results of your analysis
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