In responsibility accounting and reporting, service department costs should be charged to user departments using predetermined billing

Question:

In responsibility accounting and reporting, service department costs should be charged to user departments using predetermined billing rates rather than simply waiting until the end of the period and allocating a share of actual cost. Why?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Cost Accounting

ISBN: 978-0759338098

14th edition

Authors: William K. Carter

See More Books

Question Posted: May 03, 2016 05:42 AM

See More Questions

'Actual support department costs should be allocated rather than budgeted, as these are more accurate.' Do you agree? Explain your answer.
Recall that unit costs include direct materials, direct labor, and overhead. The costs for direct materials and direct labor are incurred throughout the period. However, overhead costs may not...
Recall that unit costs include direct materials, direct labor, and overhead. The costs for direct materials and direct labor are incurred throughout the period. However, overhead costs may not...
A quality inspector selects a sample of 12 items at random from a collection of 60 items, of which 18 have excellent quality, 25 have good quality. 12 have poor quality, and 5 are defective. (a) What...
A generator has a square coil consisting of 248 turns. The coil rotates at 79.1 rad/s in a 0.170-T magnetic field. The peak output of the generator is 75.0 V. What is the length of one side of the...
Credit Where Credit Is Due You are trying to decide whether or not to extend credit to a particular customer. Your variable cost is 15 per unit; the selling price is 22. This customer wants to buy...
Use the PewWorkPlay dataset to build a table that makes three t -test comparisons on the Concern about Job Index: 1. those who say their job involves interacting with customers, and those who dont;...
A thin uniform rectangular sign hangs vertically above the door of a shop. The sign is hinged to a stationary horizontal rod along its top edge. The mass of the sign is 2.40 kg and its vertical...
Morgan Company reported the following information for the year ended December 31, 2015: Net income $600,000; Preferred dividends declared and paid $60,000; Common dividends declared and paid $90,000;...
The income statement and additional data of Bryan Travel Products, Inc., follow: (Click the icon to view the income statement) (Click the icon to view the additional data.) Requirements 1. Prepare...
Why are service department costs included in overhead rates? Why should actual service department costs be accumulated in service department accounts instead of being charged directly to producing...
The following charges are found on the monthly report of a division that manufactures and sells products primarily to outside companies. State which, if any, of these charges are consistent with the...
I:2-11 Sometimes taxpayers may not be able to file their tax returns by the normal due date. Are extensions available? How long are the extensions? Do extensions enable taxpayers to delay paying the...
Answer the following problems with solution: Use the following information for the next two questions: The statement of financial position of the partnership of A and B as of December 31, 20x1 is...
Complete the following budgets 1 Production Budget Planned Sales Desired Ending Inventory of Finished Goods (roundup to the next unit) Total Needed Less: Beginning Inventory Total Production {7.01}
Solution needs urgently. Question 1 (5 points) In times of prosperity (with high incomes and employment), governments at all levels have resources for high cost infrastructure such as roads,...
Write a program (called assignment-1.cxx)-- (40 points) Write down the C++ program based on the following tasks. Creates an Array (1D array) and randomly assign values. Show the array with assigned...
on 17:03 Sat 11 May < 00 194843... 19871 II B itsSUNPI is live! + Hi mates im Alive chating and all the fun stuf that we do O COME & GET ME! -- Sunpi FE now Untitled... HYPE RESULTS T Potential...
For those reactions in Problem 10.58 that are electron-transfer reactions: (a) Indicate which atoms get oxidized and which atoms get reduced. (b) Indicate which reactant is the oxidizing agent. (c)...
Find the work done in pumping all the oil (density S = 50 pounds per cubic foot) over the edge of a cylindrical tank that stands on one of its bases. Assume that the radius of the base is 4 feet, the...
Service industry, job costing, law firm. Keating & Associates is a law firm specializing in labor relations and employee-related work. It employs 25 professionals (5 partners and 20 associates) who...
Service industry, job costing, two direct- and two indirect-cost categories, law firm. Keating has just completed a review of its job-costing system. This review included a detailed analysis of how...
Proration of overhead. (Z. lqbal, adapted) The Zaf Radiator Company uses a normal-costing system with a single manufacturing overhead cost pool and machine-hours as the cost-allocation base. The...
Choose two stocks from the same industry to minimize the influence of other confounding factors. You choose the industry that you are relatively more familiar with, and then estimate the implied...
why should Undertake research to review reasons for previous profit or loss?
A pension fund's liabilities has a PV01 of $200 million. The plan has $100 billion of assets with a weighted average modified duration of 8. The highest duration bond that the plan can invest in has...

In responsibility accounting and reporting, service department costs should be charged to user departments using predetermined billing

Question:

Step by Step Answer:

Service department costs should be charged to user departments by prede...View the full answer

Cost Accounting

Students also viewed these Managerial Accounting questions