Service department charges : These are the indirect expenses incurred by profit center. These are charged for the services received by the department or division, based on the activity base of the service department. To discuss : Whether the cost of brochure should be added to the CS Department and make it accountable for the cost, and give recommendations for the changes in the policy.

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Chapter 23, Problem 23.2CP

To determine

Service department charges: These are the indirect expenses incurred by profit center. These are charged for the services received by the department or division, based on the activity base of the service department.

To discuss: Whether the cost of brochure should be added to the CS Department and make it accountable for the cost, and give recommendations for the changes in the policy.

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