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Sinclair Consulting provides management consulting services to government and corporate clients. Sinclair has two support departments-administrative services (AS) and information systems (IS) - and two
Sinclair Consulting provides management consulting services to government and corporate clients. Sinclair has two support departments-administrative services (AS) and information systems (IS) - and two operating departments - government consulting (GOVT) and corporate consulting (CORP). For the first quarter of 2018, Sinclair's cost records indicate the following: Required: 1. Allocate the two support departments' costs to the two operating departments using the following methods: a. Direct method b. Step-down method c. Reciprocal method. Use: i. linear equations ii. repeated iterations 2. Compare differences in the support-department costs allocated to each operating department. Which method do you prefer? Why
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