Question
The Westside Case provides an opportunity to review the differences between the various common methodologies used to allocate indirect costs and to also assess the
The Westside Case provides an opportunity to review the differences between the various common methodologies used to allocate indirect costs and to also assess the impact of this allocation on the overall profitability of a product or service line. In addition, this case provides the opportunity to select one of the methodologies as the preferred and provides rationale for this selection.
Read the Westside Group Case (ATTACHED), and prepare a case briefing.
To assist in the completion of theWestsideCase, please download the spreadsheet (ATTACHED)
Parts 1 - 3
Parts 1 ? 3 of this assignment will be completed within the Westside Group Practice Cost Allocation Methods spreadsheet.
This spreadsheet(ATTACHED)includes 3 sections: Input Data, Allocations, and Final Output Data. Portions of the Allocation Section (Part I and Part 2 on the spreadsheet) and the Final Output Section (Part 3 on the spreadsheet) must be completed. Some of these have already been completed for you as a guide. Complete all open cells in the Allocations (Parts 1 and 2) and Final Output Data (Part 3). These parts are shaded on the spreadsheet for easier identification. Note that you do not need to complete any portion of the Double Apportionment or Reciprocal Schedules, these results are presented for your review.
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