Question: Explain one possible advantage to having two cost pools for
Explain one possible advantage to having two cost pools for each service department: one for variable costs and one for fixed costs.
Answer to relevant QuestionsWhat is a responsibility accounting system?Mansard Hotels has five luxury hotels located in Boston, New York, Chicago, San Francisco, and Los Angeles. For internal reporting purposes, each hotel has an income statement showing its revenue and direct expenses. ...Chance Morton, the manager of the service department at the Proton Electronics Company, is evaluated based on the profit performance of his department. The profit of the department is down this year because the service ...Hearthstone Appliances supplies parts for laundry and kitchen appliances. Customer orders are placed over the Internet and are generally filled in one or two days using express mail services. Angela Farnsworth, a consultant ...Tilden Financial Services has two divisions, Financial Planning and Business Consulting. The firm’s accountants are in the process of selecting an allocation base to allocate centrally provided personnel costs to the ...
Post your question