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Textbook
- Eldenburg, L. G., & Wolcott, S. K. (2011). Cost management: Measuring, monitoring, and motivating performance (2nd ed.). Hoboken, NJ: John Wiley & Sons, Inc. ISBN-13: 978-0470-76942-3.
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Explanation & Answer
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Cost Accounting
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Response one
Support departments are departments responsible for providing significant services
that help other departments in the organization such as operating departments. Support
departments are also referred to as service departments. Personnel, information technology,
maintenance and utilities are among the services they provide (Eldenburg & Wolcott, 2011). An
operation department in an organization can request for the organization’s overall data of
production for the past 3 years from the department responsible for data processing since it is a
support department. However, because the support departments normally operate on the behalf
of other internal departments, the costs incurred by this departments are allocated to the
departments that has received the service. Support departments lays off the burden of costs to
other departments so as to focus on the fundamental function.
The process that support dep...