Answered: Service organizations do not make or…

Service organizations do not make or sell goods. In fact, the output of service organizations/departments can be described as?

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter5: Support Department And Joint Cost Allocation

Section: Chapter Questions

Problem 1DQ: Why are support department costs difficult to apply to products?

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Concept explainers

Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit. Overhead expenses depend upon the nature of the business operations.

Question

A 197.

Service organizations do not make or sell goods.
In fact, the output of service
organizations/departments can be described as?

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Step 1: Definition of Service organizations/departments

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Step 2: Output of service organization

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