Describing alternative overhead allocation systems

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Reference no: EM1333802

a. Describe the problems, if any, at Reed Park. Specifically, discuss items related to decision making, cost allocation, and incentives.

b. Describe alternative overhead allocation systems.

c. Which allocation system would you choose? What effects do you feel it would have upon Reed Park's distribution operations?

d. Calculate net incomes for the three DC's under the system you have choosen and compare these results with those found under the present system.

Reference no: EM1333802

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