Goffinet Consultancy Uses the Direct Method to Allocate Its Service

question 41

Essay

Goffinet 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:

Cultural Competence

The ability to understand, appreciate, and interact effectively with people from cultures or belief systems different from one's own.

Cultural Values

Beliefs and principles that are widely accepted within a community or society, shaping behavior and norms.

Norms

Social rules or standards that dictate the behavior expected in a specific context or group.

Therapist

A professional trained to treat mental health problems, emotional challenges, and psychiatric disorders through various therapeutic techniques.