1. Using the direct allocation method, allocate costs to the revenue centers. 2. Using the step-down method, allocate costs to the revenue centers.rusyst
|Cost Centers||Direct Costs ($)||Maintenance Hrs of Serv. (%)||Telecom. # of Phones (%)|
Use the information provided in table 4-6 to answer the questions below:
1. Using the direct allocation method, allocate costs to the revenue centers.
2. Using the step-down method, allocate costs to the revenue centers.
3. Analyze the results of the two allocation methods. Do they differ? Why? Which one would you recommend?
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