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Business, 23.10.2019 02:50 untouchedyannaa

The company allocates the human resources department cost using the budgeted number of employees in each department. the costs of information systems department are allocated to other departments using the number of minutes of information processing time for those departments. a) allocate the costs of the support departments to the operating departments using the direct method. b) allocate the costs of the support departments to the operating departments using the step-down method. the sequence of allocation should be chosen based on the percentage of services provided to other support departments (as discussed in page 806 of your textbook). c) allocate the costs of the support departments to the operating departments using the reciprocal cost allocation method.

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