Catoire Consultancy Uses the Direct Method to Allocate Its Service

question 58

Essay

Catoire Consultancy uses the direct method to allocate its service department costs to its operating departments.The company has two service departments,Information Technology and Administration,and two operating departments,Corporate Practice and Government Practice.Data concerning those departments follow:
Information Technology Department costs are allocated on the basis of computers and Administration Department costs are allocated on the basis of employees.
Required:
Allocate the service department costs to the operating departments using the direct method.

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Definitions:

Cooperative

An organization or group owned and managed by its members, who work together towards a common goal or to meet their mutual needs.

Unassertive

A behavioral characteristic where an individual is passive or overly compliant, often failing to express their own needs or defend their interests.

Accommodating Conflict-Management

An approach to handling conflicts by prioritizing the other party's needs over one's own.

New Solutions

Innovative or fresh approaches devised to solve problems or address challenges.