This chapter does not directly address how to leverage technology to develop and enhance an accountant's ability to provide useful business advice. However, the chapter introduces two major uses of technology that are related to accountants' responsibilities:
1. Use of accounting information systems to accumulate cost and allocation base data.
2. Use of Excel Solver for simultaneous equations. As you address the following questions, focus on how technology assists accountants in the process of allocating support department costs.
REQUIRED
A. 1. What types of decisions are addressed in this chapter? List business decisions as well as decisions about accounting methods.
2. For the decisions you identified above, list relevant information that might be stored in an electronic database.
B. Accountants are expected to communicate orally and in writing both the processes and results of decision making. Considering this requirement, perform the following:
1. Create a spreadsheet for allocating costs from more than two support departments using the reciprocal method. Include in your spreadsheet information documenting the work performed.