Research Paper
SOM LALIT INSTITUTE OF MANAGEMENT STUDIES
PGDM – 2ND SEMESTER
SUBJECT: MANAGERIAL ACCOUNTING
TOPIC
Distinguish among the three methods of allocating the costs of support departments to operating departments
Submitted From:
Dr.Paresh Shah
Submitted By: Tejani Kalpesh (110)
ACKNOWLEDGEMENT This research paper is made possible through the help and support from everyone, Including: teachers, friends, and in essence, all sentient beings.
Especially, please allow us to dedicate our acknowledgment of gratitude toward the
Following significant advisors and contributors: First and foremost, I would like to thank DR.PARESH SHAH for his most support and encouragement. He kindly read my paper and offered invaluable detailed advices on, organization, and the theme of the paper. Second, I would like to thank to all the other professors who have taught us about Distinguish among the three methods of allocating the costs of support departments to operating departments. My pursuit of the bachelor degree. Finally, we sincerely thank to our parents, family, and friends, who provide the advice and financial support. Because it would not be possible without all of them.
INTRODUCTION
These support departments from producing departments. The costs of support departments are common to all producing departments and must be allocated to them to satisfy many important objectives. Given that the causal factors can differ for fixed and variable costs, a dual rate charging method is preferred to allocate the variable and fixed costs separately. Three methods are introduced to recognize various degrees of support department interaction considered. While the direct method allocates support
PGDM – 2ND SEMESTER
SUBJECT: MANAGERIAL ACCOUNTING
TOPIC
Distinguish among the three methods of allocating the costs of support departments to operating departments
Submitted From:
Dr.Paresh Shah
Submitted By: Tejani Kalpesh (110)
ACKNOWLEDGEMENT This research paper is made possible through the help and support from everyone, Including: teachers, friends, and in essence, all sentient beings.
Especially, please allow us to dedicate our acknowledgment of gratitude toward the
Following significant advisors and contributors: First and foremost, I would like to thank DR.PARESH SHAH for his most support and encouragement. He kindly read my paper and offered invaluable detailed advices on, organization, and the theme of the paper. Second, I would like to thank to all the other professors who have taught us about Distinguish among the three methods of allocating the costs of support departments to operating departments. My pursuit of the bachelor degree. Finally, we sincerely thank to our parents, family, and friends, who provide the advice and financial support. Because it would not be possible without all of them.
INTRODUCTION
These support departments from producing departments. The costs of support departments are common to all producing departments and must be allocated to them to satisfy many important objectives. Given that the causal factors can differ for fixed and variable costs, a dual rate charging method is preferred to allocate the variable and fixed costs separately. Three methods are introduced to recognize various degrees of support department interaction considered. While the direct method allocates support