1) According to the article Differences between Service and Operating Departments (n.d.) "costs of service departments are typically allocated to operating departments using an appropriate allocation base. The allocation base should drive or cause the cost of that department. For example, a cafeteria service department could use the allocation base of the number of meals served while the janitorial service department could use the space occupied by the department as the allocation base."

Question 1) Think about the service department that you previously identified and come up with the allocation base that would be appropriate for this specific service department. Ensure that you come up with a unique example.

Question 2) Think about a company that you have worked for or a company that you would like to work for. Identify what some of the service departments are.How do you think these costs should be allocated?