Question

Three restaurants in a downtown area of a large city have decided to share a valet service and parking lot for their customers. The cost of the service and lot is $10,000 per month. The owners of the restaurants need to decide how to divide the $10,000 cost. The actual usage, planned usage, and practical capacity in the month of May was:
REQUIRED
1. Allocate the fixed cost to each restaurant using actual, planned, and capacity usage measures.
2. In this situation, which method of allocation makes the most sense?


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  • CreatedJuly 31, 2015
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