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Q2. Suppose that you are working in a company as a cost manager that has two support departments and two operating departments. Determine the total

Q2. Suppose that you are working in a company as a cost manager that has two support departments and two operating departments. Determine the total department cost and allocation base for these departments and allocate the support department cost to the operating department based on the following methods: (4 Marks)

The direct method

The step-down method

Note: You are required to assume values of your own and they should not be copied from any sources.

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