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parts b and c of problem 16-19 please 16-19 Suppor department cost allocation direct and step down nie thods. Phoen Parmors providss manege: arvess (ASt
parts b and c of problem 16-19 please
16-19 Suppor department cost allocation direct and step down nie thods. Phoen Parmors providss manege: arvess (ASt and informetion systems (IS1- the two operaing departnerts, poverment eonsulting (60VT) and 1. Atocato the twa support departmentri coss to the bvo operatieg devertments using the fotowing mathods: a. Drect method a. Step-down method (allocste AS first) c. Step-down method lallocste 15 firtil 2. Ceripare and explain diflerences in the auppon-department cost atocated to each operating department 3. What approaches might be used to decide the sequrnce in which to allocate suppert departinents when asing tho step-down method? 1620 Support-department cost allocation, recigrocal mothed (oontituation of 16-192 Refer to the data given netiveise 1619. 1. Alocate the two support departments' costs to the two operating departeents using the reciprecal rechod, Use (a) linear equations and (b) repeated iserations. 2. Compare and explain differences in requirenens 1 with those in requirenent 1 of Exorcise 1612. Which mathod do you prefer? Why? 16.21 Direct and step-down allocition. E-books, as orline book retaler, has two operating departmentstopporate sales and consumer tales - and two support departarty - human resources and information sys: ams. Eact ales departmert conducts morchanditing acd marketing operations independenthy. E.books asea nimser of employees to allocate human resoutces cocts and processing time to alocahe infocmation syserns toste. The following data are avadable for Sepererber cue0. 1. Alocate the support departments' costs to the operating departments using the direct method 2. Pank the support departments based on the percentage of their sarvices provided to other support. departments. Use this ranking to allocate the support departments' costs to the operating departments based on the step down method. 2 How could you have ranked the support departments differenty Step by Step Solution
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