Controllable and Noncontrollable Indirect Costs

The following is a list of questions regarding the charging of indirect costs.

1. Why would an organization charge indirect service costs to the departments that use these services?

2. Should any university administrative overhead be charged to academic departments or other responsibility centers?

3. What would be an appropriate activity base for charging central telephone services to departments within an organization?

4. Give an example of a noncontrollable cost for a manager of a McDonald%u2019s franchise