Young management accounting for managers chapter 1

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Unformatted text preview: on to allocate the Maintenance cost center before the Administration cost center? Is a similar judgment involved in choosing the sequence of production centers? Why or why not? Write your answers below. ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• Answer: Management’s judgment apparently is that the Maintenance Department uses the Administration Department less than the Administration Department uses the Maintenance Department. Our resulting totals will include the cost of maintaining the machines in the Administration Department, but not the cost of administering the activities of the Maintenance Department. With regard to production centers, since there is no allocation out of production centers, their sequence is unimportant. ••••••••••••••••••••••••••••••••...
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