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companies might choose to allocate

companies might choose to allocate

ACCT 346 Final Exam A+

(TCO 6)  Explain why companies might choose to allocate the costs of their service departments (ie. Human Resources, Maintenance, Mailroom, etc…) to their production departments.  Also describe some typical bases companies use to base their allocations on.  Last, what should a company be mindful of when analyzing the profitability of segments that have allocated costs.  (Points : 15)

Some companies like to allocate their service…