I am curious to learn how other organisations are allocating their support departments' costs. Can you give a practical example of an Australian manufacturing organisation that you think may use support department cost allocation methods to allocate costs to the production departments? In your answer,

(i) tell me the name of the company

(ii) list the name of their support departments

(iii) list the name of their production departments

(iv) identify the possible allocation bases that they might be used to allocate the cost from the support departments to production departments. Why do you think they are using those allocation bases?

(v) discuss which cost allocation method do you think this organisation is using and why?