Department costs to be fixed-variable costs or mixed costs

Assignment Help Financial Accounting

Reference no: EM13748987

Auburn Banking and Loan Company has six service departments—human resources, duplicating, janitorial, accounting, graphic design, and food services—whose costs are allocated to the company’s two subsidiaries, Auburn Personal Banking and Auburn Business Banking, on the basis of their relative sales.

Required

a. Suppose you are the president of Auburn Business Banking. Will you perceive the allocated service department costs to be fixed costs, variable costs, or mixed costs?

b. In performing incremental analysis related to expanding or contracting her business, will the president of Auburn Business Banking tend to overestimate or underestimate incremental costs? Explain.

Reference no: EM13748987

Questions Cloud

Annuity-perpetuity : (Annuity - perpetuity) 3 years from now (at t=3) you will begin to receive cash flows of $1000 per year. These cash flows will continue forever. If the discount rate is 5%, what is the present value (now, at t=0) of these cash flows?

The haber process involves a synthesis reaction : The Haber process involves a synthesis reaction. The two reactants are H2 (g) and N2 (g), and the products are ammonia NH3 (g) and heat. The reaction takes place in a reaction vessel in which one of the factors that influences the reaction is a high ..

Compare and contrast the management information systems : Compare and contrast the management information systems (MIS) in place in 2 distinctly different organizations. Compare each organization's use of information systems to help manage internal operations and to make decisions.

Analyze the weaknesses of existing e-learning systems : search any topic from internet to stimulate your idea and creativity. You might identify the main problems that the user faced in their daily life or analyze the weaknesses of existing E-learning systems

Department costs to be fixed-variable costs or mixed costs : Auburn Banking and Loan Company has six service departments—human resources, duplicating, janitorial, accounting, graphic design, and food services—whose costs are allocated to the company’s two subsidiaries, Auburn Personal Banking and Auburn Busine..

What religious freedoms and opportunitie were women afforded : What new religious freedoms and opportunities were women afforded due to the Protestant and Catholic reformations? Provide specific examples.

How many kilocalories of energy are obtained : If the density of gasoline is 0.66 g/mL , how many kilocalories of energy are obtained from 2.2 gal of gasoline?Express your answer using two significant figures.

Create a case study analysis focusing on the challenge : Create a case study analysis focusing on the company's challenge relative to strategic control through a balanced scorecard and implementation.

What is the available sales and purchase discount : What is the available sales/purchase discount? When would it be available? If the discount isn't taken, the invoice must be paid by which date?

User Account

All Pages