Question
Which criterion is the best one to allocate the indirect costs of the supporting departments to the business units: the one that allocates the indirect
Which criterion is the best one to allocate the indirect costs of the supporting departments to the business units: the one that allocates the indirect costs proportionally to the profit of each business unit or per asset?
Why do you think the first one is commonly used by a lot of companies?
Do you think that you can improve the criteria explained in the part B?
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Canadian Cases In Financial Accounting
Authors: Carol E. Dilworth, Joan E. D. Conrod
2nd Edition
256111405, 978-0256111408
