# 46 the fact that the per haircut cost declines as the

This preview shows page 1. Sign up to view the full content.

This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: -- Two-Day Delivery \$1,500 538 290 -------\$2,328 Next-Day Delivery Totals \$4,000 \$9,100 1,614 -1,158 ---------------\$6,772 \$9,100 Notes: (1) \$2,690 from formula. Allocated 1/5 to administration, 1/5 to Two-Day Delivery, and 3/5 to Next-Day Delivery (2) \$1,738 from formula. Allocated 1/6 to maintenance, 1/6 to Two-Day Delivery, and 4/6 to Next-Day Delivery. _________________________________________________________________________________________________________ As you might imagine, once the number of cost centers exceeds three or four, solving the set of simultaneous equations becomes quite complex for a person, although it can be done easily with a computer. Moreover, even the stepdown method can benefit from the use of a rather simple spreadsheet application that carries out the allocations automatically. Designed properly, the computer software will allow an analyst to determine how the costs of each mission center are affected by different cost center structures, different allocation bases, and different stepdown sequences. _______________________________________________________________________...
View Full Document

## This document was uploaded on 03/30/2014.

Ask a homework question - tutors are online