=+A14-2 The Customer Service Department of Grand Lakes Technologies asked the Publications DepartService department charges ment to prepare a brochure for its training program. The Publications Department delivered the brochures and charged the Customer Service Department a rate that was 25% higher than could be obtained from an outside printing company. The policy ofthe company required the Customer Service Department to use the internal publications group for brochures. The Publi¬

cations Department claimed that it had a drop in demand for its services during the fiscal year, so it had to charge higher prices in order to recover its payroll and fixed costs.

Performance Evaluationfor Decentralized Operations 571 Should the cost ofthe brochure be transferred to the Customer Service Department in order to hold the department head accountable for the cost ofthe brochure? What changes in policy would you recommend?