Question: propose an expense allocation for heating/air conditioning. A large regional movie theater has two profit centers (ticket sales and snack concessions) and one cost center
A large regional movie theater has two profit centers (ticket sales and snack concessions) and one cost center (restrooms). The new accounting team has been tasked with setting up a responsibility accounting reporting framework for the theater. The theater has 16 auditoriums (ten of the auditoriums have 150 seats each; the other six auditoriums each have 400 seats) A large concessions area Two large restrooms Required Propose an expense allocation system for one of the following categories of expenses 1. Heating/air conditioning 2. Rent 3. Insurance 4. Wages paid to hourly employees (assume that all employees are "floaters" who share in all theater duties: selling and taking tickets: selling concessions: cleaning auditoriums and restrooms) in your solution, be sure to explain how your expenses will be allocated to the profit centers (ticket sales and snack concessions and the cost center (restrooms. The appropriate allocation base(s) are for you to decide Your solution should be about one paragraph long and does not need to contain any number
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