reciprocal method allocate support cost to production department
-1 Distinguish between the single-rate and the dual-rate methods. 15-2 Des cribe how the dual-rate method is useful to division managers in decision making. do budgeted cost rates motivate the support-department manager to improve efficiency? Give examples of allocation bases used to allocate support-department cost pools to operat- ing departments. 15-4 5 Why might a manager prefer that budgeted rather than actual cost-allocation rates be used for 15-6 To ensure unbiased cost allocations, fixed costs should be allocated on the basis of estimated 15-7 Distinguish among the three methods of allocating the costs of support departments to operating 15- costs being allocated to his or her department from another department? long-run use by user-department managers." Do you agree? Why? 2 departments. 15-8 What is conceptually the most defensible method for allocating support-department costs? Why? 15-9 Distinguish between two methods of allocating common costs. 5-10 What role does the Cost Accounting Standards Board play when companies contract with the 0 U.S. government? 5-11 What is one key way to reduce cost-allocation disputes that arise with government contracts? 5-12 Describe how companies are increasingly facing revenue-allocation decisions. -13 Distinguish between the stand-alone and the incremental revenue-allocation methods. -14 Identify and discuss arguments that individual product managers may put forward to support their preferred revenue-allocation method. -15 How might a dispute over the allocation of revenues of a bundled product be resolved? ercises -1 Distinguish between the single-rate and the dual-rate methods. 15-2 Des cribe how the dual-rate method is useful to division managers in decision making. do budgeted cost rates motivate the support-department manager to improve efficiency? Give examples of allocation bases used to allocate support-department cost pools to operat- ing departments. 15-4 5 Why might a manager prefer that budgeted rather than actual cost-allocation rates be used for 15-6 To ensure unbiased cost allocations, fixed costs should be allocated on the basis of estimated 15-7 Distinguish among the three methods of allocating the costs of support departments to operating 15- costs being allocated to his or her department from another department? long-run use by user-department managers." Do you agree? Why? 2 departments. 15-8 What is conceptually the most defensible method for allocating support-department costs? Why? 15-9 Distinguish between two methods of allocating common costs. 5-10 What role does the Cost Accounting Standards Board play when companies contract with the 0 U.S. government? 5-11 What is one key way to reduce cost-allocation disputes that arise with government contracts? 5-12 Describe how companies are increasingly facing revenue-allocation decisions. -13 Distinguish between the stand-alone and the incremental revenue-allocation methods. -14 Identify and discuss arguments that individual product managers may put forward to support their preferred revenue-allocation method. -15 How might a dispute over the allocation of revenues of a bundled product be resolved? ercises
