For Each of the Following Cost Pools Select an Appropriate

question 107

Essay

For each of the following cost pools select an appropriate allocation base from the list below if the overall cost object is to assign costs to production departments. Each base can be used only once. Assume a manufacturing company.
Cost pools:
a. Vice-president of finance's office expenses.
b. Computer operations used in conjunction with manufacturing.
c. Personnel department.
d. Manufacturing machinery cost.
e. Energy costs.
Allocation bases for which the information system can provide data:
1. Number of employees per department.
2. Employee wages and salaries per department.
3. Production facility square metreage.
4. Hours of operation by production department.
5. Machine hours by department.
6. Machines per department.
7. Operations costs of each department.
8. Hours of computer use per month per department.
9. Indirect labour hours per department.

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Definitions:

Challenge

The call to competition, contest, or battle.

Intragroup Conflict

Conflict that occurs within groups or teams.

Business Strategy

A plan of action or policy designed to achieve a major or overall aim in business.

Role Ambiguity

A situation where an individual lacks clear information about their job responsibilities, expectations, and the scope of their role.