Paragon University Operates an Extensive and an Expensive Registration, Testing

question 159

Essay

Paragon University operates an extensive and an expensive registration, testing, and counselling centre, through which all students are required to pass through when they enter the university.The registration effort's costs (for the most part)are almost impossible to allocate based upon which students require time, effort, etc.The cost of this centre is approximately 15% of the total costs of Paragon.This department engages in no other activities than the registration of students.Paragon is interested in determining the profitability of the three technical departments it operates.Paragon has the perception that some departments are more profitable than others, and it would like to determine an appropriate method of allocating the costs of this registration centre.Required:
Recommend to Paragon University a method (or methods)of allocating the costs of registration to
the three departments.

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Definitions:

Nicotine

A potent chemical found in tobacco plants that acts as a stimulant and is highly addictive, commonly consumed through smoking cigarettes.

Cocaine

A powerful stimulant drug derived from the leaves of the coca plant, which can cause intense high and is highly addictive.

Amphetamines

A class of potent stimulant drugs that affect the central nervous system, enhancing alertness and energy.

Appetite

A natural desire to satisfy a bodily need, especially for food.