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Leap State College has a business college with three different products not limited to undergraduate degrees, graduate degrees, and executive educational certificates. Leap State has
Leap State College has a business college with three different products not limited to undergraduate degrees, graduate degrees, and executive educational certificates. Leap State has three service departments, Technical Support, Career Development, and the College Library. The Assistant Dean would like to measure product line profitability and wants to include an allocation of service department costs in the analysis.
Questions:
- How would you recommend the service department costs be allocated?
- Give examples of possible allocation bases used to allocate support-department cost pools at Leap State service departments.
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