Explain Why Organisations Use Budgeted Rates Instead of Actual Rates

question 83

Essay

Explain why organisations use budgeted rates instead of actual rates to allocate the costs of support departments to each other and to user departments and divisions.
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Definitions:

Recession

A significant decline in economic activity across the economy, lasting more than a few months, typically visible in real GDP, real income, employment, industrial production, and wholesale-retail sales.

Indirect Compensation

Benefits provided to employees that are not included in direct salary or wages, such as health insurance, retirement plans, and paid time off.

On-site Daycare/Eldercare

Facilities provided by employers or institutions at the workplace to care for employees' children or elderly dependents during working hours.

Childless/Parentless Employees

Workers who do not have children or living parents, which can influence their benefits needs or workplace accommodations.