Question: Discussion Initial Response Due by Wednesday: $-$ Part $1$: Compare and contrast the three support...

Discussion Initial Response Due by Wednesday:

Part $1$: Compare and contrast the three support department allocation methods. In your response, include advantages$/$disadvantages of each method and an analysis of how support costs are allocated.

Part $2$: Recommend cost avoidance opportunities based on the scenario below:

You are a new cost accountant hired by Long Beach Automotive Sports $($LBAS$).$ LBAS is a Long Beach business that specializes in automotive restoration and customization. They have a Design Department and Fabrication Department. LBAS also has small legal, accounting, and maintenance departments. With inflation, LBAS realizes they need to cut expenses to protect profits.

In times of economic stress, companies often cut support department costs before they cut production costs. The perspective is that support departments do not generate profit and can absorb cuts without impacting revenue generation in the short$-$term. and Coyne, E$.)$ to recommend cost avoidance opportunities to LBAS. Below is a table to help conceptualize the impacts of the different allocation methods.

Discussion Response Due by Saturday: Respond to another student.

$\backslash$table$[[$Departments$,\{$

$\backslash$table$[[$Budgeted$],[$Overhead$]]\},$Budgeted Support Department Allocation$],[$Direct$,$Sequential,Reciprocal$],[$Design Department,$$,433,160\mathrm{.}00,,,002,797\mathrm{.}50,$$$1,1,105,431\mathrm{.}60,$$$,994,627\mathrm{.}00$