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Cost Allocation Concepts 1. Is it "fair" for the Dialysis Center to suffer in profitability, and hence for the department head to possibly lose his bonus, just because the Outpatient Clinic needs additional space? 2. In the past, the medical center aggregated all facility costs and then allocated the total amounton the basis of square footage. This methodology assigned an average cost rate to each patient service department, regardless of whether its space is new or old, or prime or poor. The proposed allocation for the Dialysis Center, on the other hand, requires it to bear the true facility costs of its new space. What are the advantages and disadvantages of the new methodology? Do you support the new allocation scheme? 3. If the new allocation method for facility costs is implemented, what should be the facility allocation to the Dialysis Center in 20 years, when the loan (which is the basis for the higher cost allocation) has been paid off and there are no longer any actual facility costs? 4. Explain how the revenue from medical (pharmacy) supplies is currently handled for profit and loss reporting purposes. Is there a problem with the current system? Is there a better way of reporting this revenue? If so, what is it? 5. When all issues related to the decision are considered, what is your recommendation regarding the final allocation amounts?
Jahnke Corporation issued 8,000 shares of €2 par value ordinary shares for €11 per share. The journal entry to record the sale will include
Prepare journal entries to record the write-off of receivables, the collection of $1,200 for previously written off receivables, and the year-end adjusting entry for bad debt expense.
Prepare the journal entries to record the acquisition of the land and the building.
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Prepare the journal entries to record pension expense and funding of plan assets for the year. Prepare the journal entry/ies to record any gains or losses for the year. Complete the pension spreadsheet for Sparky Corporation.
xenix corp had sales of 330000 in 2011. if it expects its sales to be at 476450 in 5 years what is the rate at which
using the abbreviations listed below what is the formula for the industry volume variance? what is the market share
Captain Inc. purchases a depreciable asset for $100,000. The life of the asset is 10 years and it has an estimated salvage value of $10,000. Captain Inc. takes a full year of depreciation expense in the year the asset is acquired. Which of the fol..
Problem: Mike Greenberg opened Clean Window Washing Inc, on July 1, 2014.During July, the following transaction were completed.
1. How do companies benefit from empowering their employees? How do employees benefit from empowerment?
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