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Requirement 2. Compare and explain differences in requirement 1 vith those of the direct method and the step down method. Which method do you prefer?
Requirement 2. Compare and explain differences in requirement 1 vith those of the direct method and the step down method. Which method do you prefer? Why? Begin by entering the total support-department costs allocated to each operating department under each of the methods below. Data table Direct method Step-down method (AS first) Step-down method (IS first) Reference Requirements 1. Allocate the two support departments' costs to the two operating departments using the reciprocal method. Use (a) linear equation and (b) repeated iterations. 2. Compare and explain differences in requirement 1 with those of the direct method and the step down method. Which method do you prefer? Why? Requirement 2. Compare and explain differences in requirement 1 vith those of the direct method and the step down method. Which method do you prefer? Why? Begin by entering the total support-department costs allocated to each operating department under each of the methods below. Data table Direct method Step-down method (AS first) Step-down method (IS first) Reference Requirements 1. Allocate the two support departments' costs to the two operating departments using the reciprocal method. Use (a) linear equation and (b) repeated iterations. 2. Compare and explain differences in requirement 1 with those of the direct method and the step down method. Which method do you prefer? Why
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