Discussion topic: Controllable and Non-controllable Indirect Costs

The following is a list of questions regarding the charging ofindirectcosts.

1.Why would an organization chargeindirectservice 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 non-controllable cost for a manager of a McDonald's franchise.