Discussion: Allocation of Support Dept Costs, Common Costs

In this chapter, we explore several techniques for allocation costs. Let's pretend you are on a committee to determine how much much tuition should increase per student for an upgrade in computer technology. For example, each student must purchase Excel for use in the Cost Accounting class but the technology fee is charged for each class. However, most classes do not use EXCEL. Propose an allocation basis so the university can recover the cost of this upgrade. Make specific recommendations and be prepared to defend your position.