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24 a) i What are responsibility centers? Give examples of each type. ii) What is the difference between RI and ROI as performance measurement tools.
24 a) i What are responsibility centers? Give examples of each type.
ii) What is the difference between RI and ROI as performance measurement tools. Explain with a numerical example. (8)
b
Arbon Company has three service departments and two operating departments. Selected data concerning the five departments are presented below: The company allocates service department costs by the step-down method in the following order: Administrative (number of employees), Janitorial (space occupied), and Equipment Maintenance (machine-hours). Required: Using the step-down method, allocate the service department costs to the operating departmentsStep by Step Solution
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