Marchiesa Partners provides management consulting services to government and corporate clients. Marchiesa has two suppor

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Marchiesa Partners provides management consulting services to government and corporate clients. Marchiesa has two support departments –Administrative Services and IT- and two operating departments –Government Consulting and Corporate Consulting. Fr the first quarter of 2021, Marchiesa´s cost records indicate the following:

Required:
1. Allocate support department´s costs to the two operating departments using:
a. Direct Method
b. Step-down (allocate first AS)
c. Step-down (allocate first IT)
d. Reciprocal methods
2. Explain the differences