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1. Why should each department participate in preparing its own budget? How much control do you think each department should have? Does your answer differ for when considering a service firm versus a m
Why should each department participate in preparing its own budget?
How much control do you think each department should have?
Does your answer differ for when considering a service firm versus a manufacturing firm?
2.
Provide an example that shows variable costing is divided among different activities, and that each activity has its own predetermined variable overhead criterion. Explain your example in detail and provide in-text citations.
3.
Explain the importance of departmental income statement in an enterprise in which several separate departments function. Provide an example of a departmental income statement in which at least three shared indirect costs are divided according to three different appropriate allocation bases.
