How might the managers problem be solved

Reference no: EM13902737

The manager of an operating department just received a cost report and has made the following comment with respect to the costs allocated from one of the service departments: ‘‘This charge to my division does not seem right. The service center installed equipment with more capacity than our division requires. Most of the service department costs are fixed, but we seem to be allocated more costs in periods when other departments use less. We are paying for excess capacity of other departments when other departments cut their usage levels.'' How might this manager's problem be solved?

Reference no: EM13902737

Questions Cloud

Compute polaris return on total assets for the year ended : Refer to Polaris financial statements in Appendix A to answer the following.

Comparative figures for polaris and arctic : Comparative figures for Polaris and Arctic Cat follow.

Anton blair is the manager of a medium size company : A few years ago, Blair persuaded the owner to base a part of his compensation on the net income the company earns each year.

Assume that he is considering two new selling : Kevin Plank of Under Armour is introduced in the chapter's opening feature. Kevin currently sells his products through multiple outlets.

How might the managers problem be solved : We are paying for excess capacity of other departments when other departments cut their usage levels.'' How might this manager's problem be solved?

How does piaggio compare to polaris and arctic cat : Key information from Piaggio (www.Piaggio.com), which manufactures two , three and four wheel vehicles, and is Europe's leading manufacturer of motorcycles and scooters follows.

Expansive interaction by different political actors : Expansive interaction by different political actors and processes with the federal government

Discuss reasons for allocating costs to departments : A critic of cost allocation noted, ‘‘You can avoid arbitrary cost allocations by not allocating any costs.'' Comment. Discuss reasons for allocating costs to departments.

How should students share the costs of the housekeeper : Having better things to do than clean house, they hire someone to come in and clean once each week. How should they share the costs of the housekeeper? One simple solution is to share the cost equally.

User Account

All Pages