ACC310_WK_IV - Discussions Cost Management and Joint...

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Discussions Cost Management and Joint Allocation Questions 10-18 You are working at a hotel in a resort location. The manager says that the hotel must raise the rates in the winter when it has fewer tourists because the cost per room is much higher. How would you respond? 11-17 Surf Beach State college (SBSC) has a business school with three products, undergraduate degrees, graduate degrees, and executive education. SBSC has three service departments, Computer Support, Career Development, and the Library. The dean would like to measure product line profitability and wants to include an allocation of service department costs in the analysis. How would you recommend the service department costs be allocated? Management Control Systems and Budgeting Questions 12-11 the manager of an operating department just received a cost report and has made the following comment with respect to the costs allocated from one of the service department: “This charge to my division doesn’t seem right. The service center installed equipment with
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ACC310_WK_IV - Discussions Cost Management and Joint...

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