ACC 410 Study Guide - Standard Cost Accounting, Financial Institution, Kaizen

• School: Ryerson University
• Department: Accounting
• Course: ACC 410
• Professor: Santoso Sugianto

Document Summary

Chapter 8 measuring & assigning support department costs. Common cost: the cost for a resource that is shared among two or more departments, activities, products, or other cost objects. We allocate the common costs of support departments to operating departments. Operating departments: are the departments or divisions within an organization that manufacture goods or product services for external customers or clients. In mnfg. businesses, operating departments product goods for sale. In service organizations, operating departments product services for clients or customers. In retail or distribution business, operating departments sell merchandise to customers. Govern"t agencies provide services such as police, fire and emergency medical response; maintenance and repair of city streets; parks and recreational facilities; and special interest classes. Not-for-profit organizations (food banks, arts and cultural groups, and child care centres) also provide services. Support departments: provide services internal to the organization that support the operating departments.