Some Support Departments Typically Found in Manufacturing and Nonmanufacturing Organizations

question 147

Essay

Some support departments typically found in manufacturing and nonmanufacturing organizations are as follows:
Cafeteria
Personnel
Maintenance
Purchasing
Accounting
Required:
For each of the preceding support departments, indicate potential bases that could be used to allocate costs to the producing departments.

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Definitions:

Capital Employed

The total amount of capital used for the acquisition of profits by a firm or project, including equity, debt, and long-term liabilities.

Transfer Pricing Policy

Regulations and practices concerning the pricing of goods, services, and intangibles transferred within an organization between different business units or divisions.