Cerce Corporation Uses the Direct Method to Allocate Service Department

question 9

Essay

Cerce Corporation uses the direct method to allocate service department costs to operating departments.The company has two service departments,Administrative and Facilities,and two operating departments,Assembly and Finishing.
Administrative Department costs are allocated on the basis of employee hours and Facilities Department costs are allocated on the basis of space occupied.
Required:
Allocate the service department costs to the operating departments using the direct method.

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Definitions:

Target Segment

A specific group of potential consumers identified as the intended recipient of a marketing strategy.

Competitors' Features

Characteristics or attributes of products or services offered by rival companies within the same industry.

Semantic Scaling Methods

Techniques used in surveys and research to measure the meaning that respondents attach to specific attributes or concepts, typically involving a range of scales.

Multidimensional Scaling

A statistical technique used in market research to analyze similarities or dissimilarities in preferences or perceptions among products or services.