Question
In a trash collection business, the depreciation expenses of trash appliances and compactors are allocated to the machines, employee wages to the department manager, and
In a trash collection business, the depreciation expenses of trash appliances and compactors are allocated to the machines, employee wages to the department manager, and utility supplies to the department that orders the supplies. In this example utilities as an indirect cost are divided among various departments depending on their utility costs. The employee wages form another part of indirect costs to the administrative department. Lastly, machine expenses like cost of maintenance falls under the operations department. Calculate the net income percentage base on these information.
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