Question: Step-down method (AS first) Step-down method (IS first) x Requirements 1. Allocate the two support departments' costs to the two operating departments using the reciprocal

 Step-down method (AS first) Step-down method (IS first) x Requirements 1.

Step-down method (AS first) Step-down method (IS first) x 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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