There are two support departments, Accounting and Catering. Accounting provides 5% of its services to Catering. Catering provides 10% of its services to Accounting. Catering should be allocated first in the step down method.

Question

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Catering should be allocated first in the step down method because it provides a higher percentage of its services to other departments (10%) compared to Accounting (5%).

There Are Two Support Departments, Accounting and Catering