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Unformatted text preview: number of hours spent by each division's personnel in community outreach activities. This base would be more reflective of the actual contribution of each division to the program. 2 Arshdeep Sandhu Chapter 12 Ind. Assignment Part 3. The reason for allocating utility costs to the divisions is so that each division's cost reflects the total cost of running the division. Since none of the divisions can operate without electricity, heat, water, and so forth, these costs should be reflected in divisional cost reports. By allocating such costs, division managers are made aware of these costs and are able to reflect the costs when pricing services and seeking third-party reimbursements, such as those from insurance companies. Arshdeep Sandhu, ADMN 3107, P 12-55, March 29, 2011...
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- Spring '11
- Arshdeep Sandhu, Administr ative Total