Asked by
Fatima Javed
on Dec 17, 2024Verified
Support department allocations are similar to the expenses of a profit center that purchases services from a source outside the company.
Support Department Allocations
The costs of services provided by an internal support department and assigned to profit centers based on the usage of the service by each profit center.
Profit Center
A business unit or department within an organization that is responsible for generating its own revenue and profit.
- Identify the principles of direct and indirect operating costs and their significance for particular departments or units.
- Understand the importance of allocating rates for support departments and their effect on various divisions.
Verified Answer
FB
Learning Objectives
- Identify the principles of direct and indirect operating costs and their significance for particular departments or units.
- Understand the importance of allocating rates for support departments and their effect on various divisions.
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