ACCT 102 Study Guide - Midterm Guide: Quality Function Deployment, Deutsche Luft Hansa, Cost Driver
Document Summary
2 types of departments in manufacturing company: prod/op dpt assemble/machine products; prod/conversion happens, service/support department engineers & maintains to support prod dpt. Reflects type of activity the service is engaged in. High cause/effect relation tying cost of providing service to service provided. Supported by physical observation, correlation analysis, or logical analysis of relationship between departments. Diff among allocations inc as: 1) magnitude of reciprocal services inc and 2) diff across support dept"s usage of each other"s services inc. All methods are used, but direct & step-down are more common. Usage of reciprocal method has inc, but it"s hard to explain & Gen plant (gp) engineering (e) machine a assembly b. Allocate service costs example: direct method: gp: calculate % hours dedicated to each step of production department: % assembly b_gp = 2/(1+2: e: calculate % hours dedicated to each step of production department:
