Support+Dept+Cost+Allocation+_2

Support+Dept+Cost+Allocation+_2 - Todays quote Any idiot...

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2009 Foster School of Business Cost Accounting L.DuCharme 1 Today’s quote Any idiot can face a crisis: It is this day-to-day living that wears you out. --Anton Chekhov
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2009 Foster School of Business Cost Accounting L.DuCharme 2 Allocation of: Support Department Costs, Common Costs, and Revenues Chapter 15
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2009 Foster School of Business Cost Accounting L.DuCharme 3 Overview Allocation of support department costs Example of 3 ways Allocation of Common Costs Example of 2 ways Allocation of Revenues from Bundled products/services
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2009 Foster School of Business Cost Accounting L.DuCharme 4 Operating vs. Support Departments An operating department (a production department in manufacturing companies) adds value to a product or service. A support department (service department) provides the services that assist other operating and support departments in the organization.
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2009 Foster School of Business Cost Accounting L.DuCharme 5 Single-Rate and Dual-Rate Methods The single -rate cost allocation method pools together all costs in a cost pool. The dual -rate cost allocation method classifies costs in each cost pool into two cost pools: a variable-cost cost pool and a fixed-cost cost pool.
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2009 Foster School of Business Cost Accounting L.DuCharme 6 Budgeted versus Actual Rates Budgeted rates let the user department know in advance the cost rates they will be charged. During the budget period, the supplier department, not the user departments, bears the risk of any unfavorable cost variances. Why?
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Foster School of Business Cost Accounting L.DuCharme 7 Budgeted versus Actual Usage Allocation Bases Organizations commit to infrastructure costs on the basis of a long-run planning horizon. The use of budgeted usage
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Support+Dept+Cost+Allocation+_2 - Todays quote Any idiot...

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