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Allocation of Service Department Costs
Allocation of Service Department Costs to Production departments ,Service departments are those departments that provide support to production departments however do not engage directly in the production of the products as an example of the maintenance department, accounting department, and the legal department. Service departments give services to each other and at the similar time to the production department. These methods of allocating service costs involve:
1. Reciprocal Method
2. Step-wise Method
3. Direct Allocation Method
Morrow Company applies overhead based on direct labor hours. At the beginning of the year, Morrow estimates overhead to be $620,000, machine hours to be 180,000, and direct labor h
PROFIT VARIANCES Sales variances are important as they have a direct bearing on profits earned by the organization. thus, they can be used as the basis of determining profit
Semi Fixed Costs Are costs along with both a variable and fixed cost component? The fixed component is such portion that is constant irrespective of the level of activity. The
Relationship among management accounting and cost accounting Referring to CIMA's definition for cost accounting, we can determine cost accounting is a part of management accou
The CFO of ABC Municipality has heard of activity based costing and wants to execute it in the municipality. Because ABC involves a number of changes to how service costs are deter
Average costing method has the following main advantages: 1.It is a realistic costing method useful to management in analyzing operating results and appraising future production
I''m about to take my first cost accounting class in college, Do i need algebra skills to do well on this class
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Ed Mettway was concerned about his firm''s ability to acquire the necessary property, plant, and equipment to take advantage of steadily increasing sales. Touring Enterprises, esta
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