SEU Reasons for Allocating Servide Department Costs Discussion

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rycngeba

Business Finance

Saudi electronic university

Question Description

I’m working on a Accounting exercise and need support.

Explain at least three reasons why firms would care about allocating support/service department costs and provide examples.


Explanation & Answer:
4 Paragraphs
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Explanation & Answer

Attached.

Running head: REASONS FOR ALLOCATION

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Reasons for Allocation
Name
Saudi Electronic University

REASONS FOR ALLOCATIONS

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Reasons for Allocation
For a company to run, there have to be other services that take care of it. These services are
allocated to the Service department of that particular company. The expenditures in the service
department have to be kept low or up to the budgeted amount. Regulating and moderating the costs
is the work of the services department manager. The control of all the services in a different
department of a company comes from the service department. It is therefore essential to note that
these costs cannot be shared among departments. Sharing of the service cost may result in
unexpected cost coverages.
In ...

Cnhyvqnib (20206)
Duke University

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