Allocating Cost of Service Departments
Silver Star Company is organized in three service departments (Personnel,
Administration, and Maintenance) and two revenue-generating departments
(Stamping and Assembly). The company uses the step method
Chapter (3 )
Flexible Budgets, and
Methods Used to decompose the mixed cost into variable
portion and fixed portion:
1. Scatter Graph method.
2. High-Low method.
3. Linear regression (Ordinary Le