Question

. The post must be a minimum of 250 words in length Company ABC has a...

. The post must be a minimum of 250 words in length

  • Company ABC has a central copying center that is used by all five departments in the company. In order to process any work an individual in one of these departments must utilize an assigned department code. The copying center is viewed as a cost center. It maintains four full time employees and uses 500 square feet of a 10,000 square foot building.
  • How would you assign the cost of the copy center to each department? Why?

Homework Answers

Answer #1

Firstly the fully cost incurred by the copy center should be calculated.

If logs are maintained for the assigned department code used than those can be used to accurately distribute the cost. Or manual journal can be maintained to keep track of how much of copy center is used by each department.

Than the total used units should be divided from total cost and respective used units of department should be multiplied to calculate the cost for each department to be charged.

Hope this meets your purpose.

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