Service Dept Flashcards
1
Q
Core Function
A
Producing or Operating Dept which creates products/services sold to customers
2
Q
Technical Reasons for Allocating Service Dept
A
provide service integral to producing the finished goods/services.
Cost should form part of the costs of production & be assigned to producing depts where FG are produced so there is a complete product costs
3
Q
Organisation Management Reasons for Allocation
A
to provide operating dept more complete data for making decisions, help measure profitabilitu, encourage dept to use resources wisely & create an incentive to work efficiently
4
Q
How Many Methods
A
Direct & Step
5
Q
Format for Step Method
A
Overhead Cost 1st Service Dept Allocation 2nd Service Dept Allocation 3rd Service Dept Allocation Service Dept Cost Allocated Total After Allocation
