Choose a method of allocation and provide your rationale

Assignment Help Accounting Basics

Reference no: EM13388520

Suppose you are the manager of a widget-production company. The company's two support departments, Purchasing and Human Resources, are currently allocated amongst its three manufacturing departments: Laminating, Fabricating, and Assembling. Currently, the support department's costs are divided equally among the three manufacturing departments. The company has conducted an analysis using the number of employees in the manufacturing departments as the activity driver. The results of the analysis indicate Fabricating would receive 50% of the total costs of Purchasing and Human Resources, Laminating would receive 30%, and Assembling would receive 20%. As a manager, would you suggest the firm adopt the new activity-driven allocations or retain the current allocation method? Choose a method of allocation and provide your rationale. Identify at least two additional cost drivers that could be used to allocate the costs of the two support departments and explain the rationale you used to select the additional cost drivers.

Must be original work, and no more than 250 words. Must have proper citation.

Reference no: EM13388520

Questions Cloud

Business culture is the context in which the measures exist : business culture is the context in which the measures exist. they are bound to each other in terms of context and

Describe how the given internal and external factors affect : write a 700- to 1050-word paper in which you explain how internal and external factors affect the four functions of

Be substantive and clear and use examples to reinforce the : be substantive and clear and use examples to reinforce your ideas. because you just came on board the chief executive

For this assignment you will continue to reflect on what it : for this assignment you will continue to reflect on what it takes to create ldquoinnovation architecturerdquo to

Choose a method of allocation and provide your rationale : suppose you are the manager of a widget-production company. the companys two support departments purchasing and human

Describe the logic of why each criterion must be : within the discussion board area write 400-600 words that respond to the following questions with your thoughts ideas

As with any interaction with people you should be aware of : as with any interaction with people you should be aware of some basic positives and negatives related to using

Evaluate how organizational functions such as marketing : write a 1050- to 1400-word paper in which you select an organization with which you are familiar and present the

What other costs does the project manager need to be : using textbook read the article three perceptions of project cost.based on your research and reading answer the

User Account

All Pages