Look at the following data: Service departments Operation departments Admin Bacs Accounting others Department cost before allocation
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Question:
Look at the following data:
Service departments | Operation departments | |||
Admin | Bacs | Accounting | others | |
Department cost before allocation | Rs 180000 | Rs 90000 | Rs 190000 | Rs 900000 |
No. of employees | 15 | 10 | 20 | 80 |
No. of PCs | 2 | 20 | 18 | 102 |
Other information is as follows: Bacs: Business administration computer services What are the service departments? Show the allocation bases with respect to the service departments. Then, rank the service departments for step down method of redistribution of OH. Give proper reasons for your ranking of service departments.
Related Book For
Managing Controlling and Improving Quality
ISBN: 978-0471697916
1st edition
Authors: Douglas C. Montgomery, Cheryl L. Jennings, Michele E. Pfund
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