Difference between producing and support departments

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Question -

1. Describe the difference between producing and support departments.

2. Assume that a company has decided not to allocate any support department costs to producing departments. Describe the likely behavior of the managers of the producing departments. Would this be good or bad? Explain why allocation would correct this type of behavior.

3. Why is it important to identify and use causal factors to allocate support department costs?

Reference no: EM132870166

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