Why is it generally a good idea to allocate budgeted, rather than actual, service department costs?

Question:

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

Step by Step Answer:

Related Book For book-img-for-question

Managerial Accounting

ISBN: 9781119577720

7th Edition

Authors: James Jiambalvo

See More Books

Question Posted: Jun 19, 2020 01:10 PM

See More Questions

Why is it generally a bad idea to use IRR to choose between mutually exclusive projects?
Why might a manager prefer that budgeted rather than actual cost-allocation rates be used for costs being allocated to his or her department from another department?
Why is it generally more difficult to detect skimming than cash larceny?
A home buyer bought a house for $245,000. The buyer paid 20 percent down but decided to finance closing costs of 3 percent of the mortgage amount. If the borrower took out a 30-year fixed-rate...
An accountant screens large batches of bills according to the following sampling inspection plan. She inspects 4 bills chosen at random from each batch and passes the batch if, among the 4, none is...
A nation has a comparative advantage in producing a good when a. it can produce a good for a lower input cost than other nations can. b. the opportunity cost of producing a good, in terms of the...
Do some research on mergers and acquisitions. What were the five largest mergersacquisitions last year? Make a list of the partners in each. What reasons were given for the merger-acquisition? Do you...
The Fisher Apparel Company balance sheet for the year ended 2006 is as follows: a. What is Fisher's investment in current assets? b. Determine Fisher's working capital investment. c. Determine...
You are planning for a very early retirement. You would like to retire at age 40 and have enough money saved to be able to withdraw $210,000 per year for the next 40 years (base family history, you...
In recent years consumers trying to save money on their high cable bill have been cutting the cord and switching to online content streaming for their television entertainment. a.Draw a graph to...
If a company is allocating cafeteria costs to all departments within the company, what allocation base might result in a causeand-effect relationship?
Why might noncontrollable costs be allocated to a department?
So you dont think its fair for you and your team to pick up after the football team. Identify the response style exemplified in each statement. A. Advising B. Diverting C. Probing D. Reassuring E....
The Role of Leadership in Shaping Organizational Culture Recent research stated that [c]ompanies with an established organizational culture that includes strong capabilities for change, commitment to...
Unscheduled absences by clerical and production workers are an important cost in many companies. Reducing the rate of absenteeism is, therefore, an important goal for a company's human relations...
Many of the largest tech firms, including Google, Apple, Amazon, and Microsoft, have spent hundreds of millions of dollars to improve their information technology infrastructure. Now, these companies...
In the business sense, a product refers to a commodity available for purchase, encompassing both services and tangible or intangible items. It may exist in physical, virtual, or cyber forms. Every...
Data Exploration and Multiple Linear Regression (MLR) using SAS. The "College" data set contains the statistics for many US Colleges from 1995 issue of US News and World Report. It has 777...
A manufacturer of computer terminal fuses wants to establish a control chart to monitor the production process. Each hour, for a period of 25 hours, during a time when the process is known to be in...
Choose a company from the SEC EDGAR Web site for your Key Assignment to evaluate for the impact of convergence to IFRS. Review the financial reports and notes of the company you have chosen from the...
Reef Office Supplies is interested in estimating the relation-ship between customer service costs and sales. The following data are available: Required a. Prepare a scattergraph of customer service...
Reef Office Supplies is interested in estimating the cost involved in hiring new employees. The following information is available regarding the costs of operating the Human Resource department at...
Madrigal Theater Company is interested in estimating fixed and variable costs. The following data are available for the month of December. *Author royalties/fees are fixed because the theater pays...
What is Coke's average ownership percentage in its equity method investments? Goodwill is 7000 Calculate the firm's current ratio (current assets/current liabilities). Calculate the current ratio...
John has to choose between Project A and Project B, which are mutually exclusive. Project A has an initial cost of $30,000 and an internal rate of return of 16 percent. Project B has an initial cost...
Complete the table below, for the above transactions

Why is it generally a good idea to allocate budgeted, rather than actual, service department costs?

Question:

Step by Step Answer:

If budgeted costs a...View the full answer

Managerial Accounting

Students also viewed these Business questions