15-20 Phoenix Partners provides management consulting services to government and corporate Required Allocate the...

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Accounting

15-20 Phoenix Partners provides management consulting services to government and corporate Required
Allocate the two support departments' costs to the two operating departments using the
following methods:
a. Direct method
b. Step-down method (allocate AS first)
c. Step-down method (allocate IS first)
Compare and explain differences in the support department costs allocated to each
operating department. 15-20(30 min.) Support-department cost allocation; direct and step-down methods.
clients. Phoenix has two support departmentsadministrative services (AS) and information
systems (IS)and two operating departmentsgovernment consulting (GOVT) and corporate
consulting (CORP). For the first quarter of the year, Phoenix's cost records indicate the
following:
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