Andrea M. Stoll 15 15 Support Department Allocation The Customer Service Department of Door Industries Inc. asked the Publications Department to prepare a brochure for its training program. The Publications Department delivered the brochures and charged the Customer Service Department a rate that was 25% higher than could be obtained from an outside printing company. The policy of the company required the Customer Service Department to use the internal publications group for brochures. The Publications Department claimed that it had a drop in demand for its services during the fiscal year, so it had to charge higher prices in order to recover its payroll and fixed costs. Comment: Oftentimes, company's mandate, who the approved outside vendors are and/or how matters as such are handled: it was policy to use the internal Publications Department. 1. Should the Customer Service Department have asked to be given a quote on the price and/or used an outside company even when that was against company policy, knowing that they could have saved the organization money or does that matter since it is all an internal charge from one department to another? 2. Recommend how the cost of the brochure should be transferred to the Customer Service Department