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Palace Company has two service departments and two user departments.The number of employees in each department is:
The fixed costs of the Personnel Department are allocated on a basis of the number of employees.If these costs are budgeted at $37,125 during a given period,the amount of cost allocated to the Cafeteria under the step method would be:
Controllable Costs
Expenses that can be directly managed or influenced by a specific manager or management level within an organization.
Uncontrollable Costs
Expenses over which a manager or business has no direct control, often determined by external factors.
Production Manager
A professional responsible for overseeing the production process within a manufacturing facility, ensuring that goods are produced efficiently, safely, and meet quality standards.
Responsibility Centre
A unit within an organization, such as a department or division, whose manager is accountable for specific financial and operational outcomes.
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