(Appendix.) The inverse of the matrix A in the cost allocation example can be subdivided into four submatrices in the following form:

The partitions are established by drawing a line below the last row of coefficients that are related to producing departments (that is, row three in the appendix example) and a vertical line to the right of the last column of coefficients for producing departments (that is. between the third and fourth columns in the appendix example). Examine the elements of each of these submatrices and consider how the elements are used in the matrix multiplication to determine the allocation of costs. Give an explanation of the functions of each of these submatrices.

Transcribed Image Text:

F R