ACTG 2P21 S01 16 June 2010

ACTG 2P21 S01 16 June 2010 - ACTG 2P21 S01 16 June 2010 Up...

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ACTG 2P21 S01 16 June 2010 Up to this point we have been handed OH charges for production. If you are a firm that does both auditing and taxes, consider, who has more non value added time? Auditing since they have so much travel time. You also need to consider that each production department uses the various services of your company at different rates. Since Auditors are out a lot of the time, they probably use laptops, while tax people are in the office, so they probably use desktops. These will result in different costs used for IT Services. They will also be different in their use of cafeteria, etc. Every thing we’ve seen in the past as indirect is actually direct to the place they are being used. They may be indirect to the end product, but they are direct to the department. We need to know cost objects very well for the final. Paul might ask of the next problem: Are those costs direct to the product? No. Are those costs direct to that department? Yes. Problem 9.43 from the textbook.
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ACTG 2P21 S01 16 June 2010 - ACTG 2P21 S01 16 June 2010 Up...

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