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Who allocates the cost of support departments to production departments, for whom do they do it,...

Who allocates the cost of support departments to production departments, for whom do they do it, and why do they do it?

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Not all discrete units within a business organisation are focused on production of the end product. The cost of support departments are allocated to production departments because they exist to support the production departments.Examples of support departments are administration, maintenance etc.Support departments aid multiple production departments at the same time and accountants must allocate and account for all these costs. It is crucial that these service departments costs to be allocated to production departments so that the cost of conducting business in production departments are clearly and accurately reflected.

Accountants allocate support department cost to production departments.

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