The Generalized Process for Allocating Support Department Costs Comprises Six

question 6

Short Answer

The generalized process for allocating support department costs comprises six steps, listed below in random order. In the space provided, indicate the order in which the steps should be performed (1 through 6).
____ Assign costs to cost pools.
____ Choose and apply a method for allocating support department costs to operating departments.
____ Clarify the purpose of the allocation.
____ For each support department cost pool; choose an allocation base.
____ Identify support and operating department cost pools.
____ If relevant, allocate support costs from the operating departments to units of goods or services.

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Definitions:

Traditional News Releases

Public relations statements distributed to the media in a standardized format, aiming to announce something newsworthy.

Water Resistant

Referring to materials or products designed to resist the penetration of water to some degree but not entirely waterproof.

Goodwill

The intangible value of a company's brand name, customer relations, employee morale, and other factors not on the balance sheet.

Goodwill Messages

Communications that are sent to build rapport and positive relationships, often congratulating, thanking, or expressing well-wishes.