BUS 630 WEEK 3 ASSIGNMENT
gogetter49
Week3HWPresentation1.pptx
BUS630 Week 3 Discussions
Departments
Operating departments
Tied to the productive effort
Directly provide products or services to customers.
Service centers
Provide supporting services that facilitate the activities of the operating departments.
Examples - maintenance, quality control, cafeterias, internal auditing, personnel, accounting, production planning and control, and medical facilities.
Cost Drivers
Service center costs are allocated to
operating departments by
means of a cost driver.
Week 3 Case
CASE 5A -- GLASER HEALTH PRODUCTS
Glaser Health Products of Ranier Falls, Georgia, is organized functionally into three divisions: Operations, Sales, and Administrative.
Purchasing, receiving, materials and production control, manufacturing, factory personnel, inventory stores, and shipping activities are under the control of the vice-president for operations, George Gottlieb.
Advertising, market research, and sales are the responsibility of the vice president for sales, Jake Bogan.
Accounting, budgeting, the firm's computer center, and general office management are delegated to the corporate controller (Administrative), Charlie Kaplan.
Cost Items
Depreciation on factory equipment.
Depreciation on office equipment.
Depreciation on factory building.
Advertising manager's salary.
Assembly foreman's salary.
Salespersons' salaries.
Salespersons' travel expenses.
Supplies for the Machining Department.
……….
Cost Classifications
| Cost Object | Divisions | Activities | Cost Driver |
| Depreciation on factory equipment | O | F | Machine hours |
Provide adequate response to each question!
