ACT 500 SEU Support Department and Joint Cost Allocation Discussion
Description
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Support Department and Joint Cost Allocation
Discussion Question:
Q- Discuss the allocation of support department costs and joint costs for one of the following types of business: (a) TV assembler, (b) building contractor, (c) automobile repair shop, (d) paper manufacturer, (e) custom jewelry manufacturer? Discuss which of the three commonly used methods for allocating support department costs would or could be used and which of the four methods for allocating joint costs would or could be used in that business type and why. In the business type you selected, what is the most important implication improving operations in that business type?
Directions:
Discuss the concepts, principles, and theories from your textbook. Cite your textbooks and cite any other sources if appropriate.
Readings
Required
Chapter 5 in Managerial Accounting
Fang, F. (2020, March). Sourcing and procurement cost allocation in multi?division firms. Production & Operations Management, 29(3), 767-78.
Recommended:
Module 05 PowerPoint Presentation
Minjae, K., Jeong-Hoon, H., Iny, H., & Taesik, A. (2020). Distorted cost allocation: An encouragement or discouragement? Seoul Journal of Business, 26(2), 89–119.
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