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https://www.principlesofaccounting.com/chapter-23/service-costs/
The allocation of service department costs occurs to support measurement of full product cost (as contemplated by GAAP), to make managers of operating units aware of the complete cost of their activities, and to discourage waste and inefficiency by over-utilization of service departments.
https://courses.lumenlearning.com/tcc-managacct/chapter/allocation-of-service-department-costs/
The sequence of allocation generally starts with the service department that has incurred the greatest costs. After this department’s costs have been allocated, the service department with the next highest costs has its costs allocated, and so forth until the service department with the lowest costs has had its costs …
https://quizlet.com/25240318/3-allocating-support-costs-to-producing-departments-flash-cards/
Explain why it is better to allocate budgeted support service costs rather than actual support service costs. Allocating actual costs passes on the efficiencies or inefficiencies of the service department, something that the manager of the producing department can not control.
https://accountingstudentpnu.files.wordpress.com/2017/03/hca14e_sm_ch15.pdf
15-1 CHAPTER 15 ALLOCATION OF SUPPORT-DEPARTMENT COSTS, COMMON COSTS, AND REVENUES 15-1 The single-rate (cost-allocation) method makes no distinction between fixed costs and variable costs in the cost pool. It allocates costs in each cost pool to cost objects using the same
https://www.mbaskool.com/business-concepts/operations-logistics-supply-chain-terms/15416-support-cost.html
One of the most simple method of allocation where support department cost is allocated to the production units or department. 2) Sequential Method of Allocation. The sequential/step method of allocation recognizes that interactions among sup¬port departments do occur.
https://quizlet.com/102682565/acc-303-ch-15-allocation-of-support-department-costs-common-costs-and-revenues-flash-cards/
Start studying ACC 303- Ch. 15-Allocation of Support-Department Costs, Common Costs, and Revenues. Learn vocabulary, terms, and more with flashcards, games, and other study tools.
http://www.csun.edu/%7Ehcbus012/acct380/guides/chapter06.doc
Allocate support department costs to producing departments. The support department costs are part of the total product costs and must be assigned to the products through cost allocation from support departments to producing departments. 4. Calculate predetermined overhead rates for producing departments. 5. Allocate overhead costs to the units ...
https://courses.lumenlearning.com/sac-managacct/chapter/step-method-of-allocation/
The total administration cost has changed since we have the original department costs of $4,000 + maintenance cost allocated above of $2,667 making the new administration cost $6,667. Administration will be allocated based on number of employees.
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