ppt课件-allocationofsupportdepartmentcosts,commoncosts,and.pptVIP

Allocation of: Support Department Costs, Common Costs, and Revenues Chapter 15 Overview Allocation of support department costs Example of 3 ways Allocation of Common Costs Example of 2 ways Allocation of Revenues from Bundled products/services Operating vs. Support Departments Single-Rate andDual-Rate Methods Budgeted versus Actual Rates Budgeted versus ActualUsage Allocation Bases Allocating SupportDepartments Costs—3 methods Allocating SupportDepartments Costs—in-class example Allocating SupportDepartments Costs (do in class) Allocating Common Costs Stand-Alone Example Stand-Alone Example Stand-Alone Example Incremental Cost Example Revenues and Bundled Products Revenues and Bundled Products Allocation of Revenues End of Chapter 15 * An operating department (a production department in manufacturing companies) adds value to a product or service. A support department (service department) provides the services that assist other operating and support departments in the organization. The single-rate cost allocation method pools together all costs in a cost pool. The dual-rate cost allocation method classifies costs in each cost pool into two cost pools: a variable-cost cost pool and a fixed-cost cost pool. Budgeted rates let the user department know in advance the cost rates they will be charged. During the budget period, the supplier department, not the user departments, bears the risk of any unfavorable cost variances. Why? Organizations commit to infrastructure costs on the basis of a long-run planning horizon. The use of budgeted usage to allocate these fixed costs is consistent with the long-run horizon. Typically, you use actual usage to allocate variable costs. Direct method: Allocates support department costs to operating departments only. Step-down (sequential allocation) method: Allocates support department costs to other support departments and to operating departments. Reciprocal allocation method: Allocates costs by services provided among all