管理会计双语人教版 chapter 09.pptVIP

Copyright ? 2010 Pearson Education, Inc. Publishing as Prentice Hall. * Chapter 9 explains decentralization and allocating service department costs. The first learning objective is to learn about shared resources and service departments. In most companies, there are departments that provide services to multiple departments or divisions for the company. These shared resources are often called service departments because they provide services to other departments at the same company. Another common characteristic of service departments is that they usually do not generate revenues. Examples include Payroll and Human Resources, Accounting, Copying/Graphic Services, Physical Plant, Advertising-companywide, Mail and Shipping Services, Shared Facilities, Legal Services, and Travel Booking Services. In this example, the library is a shared resource/service department providing library services to three divisions: the Arts Division, the Business Division, and the Math Sciences Division. The second learning objective demonstrates allocating service department costs. So, how do companies charge various departments for their use of service departments? Ideally, the company should allocate the service department costs based on each division’s use of the shared services. The company should use the primary activity that drives (increases or decreases) the cost of the shared department as the allocation base. When usage data is not available or is too costly to collect, companies will resort to allocating Service Department costs based on each division’s “ability to bear” the cost. In such cases, companies allocate the Service Department cost based on the amount of revenue or operating income one division generates compared to others. The activity that drives the cost should drive the allocation of cost to the departments that use the shared service. Remember, ideally, the company should allocate the service department costs based on each division’s use of the shared servic