Complete Questions 12-11 and 13-7. Remember to complete all parts of the problems and report the results of your analysis. Do not forget to show the necessary steps and explain how your attained that outcome. Respond to at least two of your classmates’ postings.
The manager of an operating department just received a cost report and has made the following comment with respect to the costs allocated from one of the service departments: “This charge to my division doesn’t seem right. The service center installed equipment with more capacity than our division requires. Most of the service department costs are fixed, but we seem to be allocated more costs in periods when other departments use less. We are paying for the excess capacity of other departments when other departments cut their usage levels.” How could this manager’s problem be solved?
“Preparing a budget is a waste of time. The strategic plan is what we work to accomplish.” How would you respond to this comment?
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