How could you have ranked the support departments

Assignment Help Accounting Basics

Reference no: EM132970593

Question: Hudson Books, an online book retailer, has two operating departments - corporate sales and consumer sales - and two support departments - human resources and information systems. Each sales department conducts merchandising and marketing operations independently. Hudson Books uses number of employees to allocate human resources costs and processing time to allocate information systems costs. The following data are available for September 2020.

a) Allocate the support departments' costs to the operating departments using the direct method.

b) Rank the support departments based on the percentage of their services provided to other support departments.

c) Use the above ranking to allocate the support departments' costs to the operating departments based on the step-down method.

d) How could you have ranked the support departments differently?

Reference no: EM132970593

Questions Cloud

Determine the cltv for the client in the four ways : Determine the CLTV for the client in the four ways using the Finance Division calculated that the client would bring in net returns of $80,000

Should a sports organization know what its stakeholders : Should a sports organization know what its stakeholders are doing? Also, should a sports organization be held accountable when a stakeholder violates a law/by-l

Prepare the report for calm teas inc : you are the main point of contact for the client and for your preliminary audit plan you must assess the risks of this engagement. Prepare the report.

Describe three product features part of product design : 1 Describe three product features that are commonly adapted as part of product design.

How could you have ranked the support departments : How could you have ranked the support departments differently and Use the above ranking to allocate the support departments' costs to the operating departments

What is organizational data : What is Organizational Data, Master Data and Transaction Data?

Determine if should proceed with the agreement : Determine if should proceed with the agreement if the cost of capital is 9%. Mark is considering purchasing a franchise agreement to sell food for ten years.

Identify and list commonwealth legislation : Identify and list Commonwealth legislation and the legislation of your state or territory relating to the areas below. Thinkabout property management and sales

What is the year-0 net cash flow : What is the Year-0 net cash flow and What is the additional Year-3 cash flow (i.e, the after-tax salvage and the return of working capital)

User Account

All Pages