Managerial Accounting: Creating Value in a Dynamic Business Environment
Managerial Accounting: Creating Value in a Dynamic Business Environment
11th Edition
ISBN: 9781259569562
Author: Ronald W Hilton Proffesor Prof, David Platt
Publisher: McGraw-Hill Education
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Chapter 17, Problem 23E
To determine

Allocate the budgeted costs of the Human resource department and computing department to the Deposit and Loan departments using the reciprocal-services method.

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For this assignment you are to assume that you are involved in the preparation of your company's master budget.  The company's sales team provides information concerning expected unit sales and pricing for use in preparation of the sales budget.  Further, you are aware that a portion of the sale team's compensation is based on their ability to meet the sales budget.  What would the memorandum be to the vice president of finance outlining your concerns about this practice.  Include any concerns that you have about potential bias in the information provided by the sales team.
Tuscaloosa National Bank has two service departments, the Human Resources (HR) Department and the Computing Department. The bank has two other departments that directly service customers, the Deposit Department and the Loan Department. The usage of the two service departments’ output for the year is as follows:                                                                             Provider of Service                                                                                       HR                   Computing User of Service HR ................................................................................    —                        15% Computing ...................................................................10%                        — Deposit ...........................................................................60%                     50% Loan .................................................................................30%                     35% The…
Maris Company uses the following budgets: balance sheet, capital expenditure, cash, direct labor, direct materials, income statement, manufacturing overhead, production, sales, and selling and administrative expense.Prepare a diagram of the interrelationships of the budgets in the master budget. Indicate whether each budget is an operating or a financial budget.

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Managerial Accounting: Creating Value in a Dynamic Business Environment

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