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QUESTION

Surf Beach State College (SBSC) has a business school with three products, undergraduate degrees, graduate degrees, and executive education.

Surf Beach State College (SBSC) has a business school with three products, undergraduate degrees, graduate degrees, and executive education. SBSC has three service departments, Computer Support, Career Development, and the Library. The dean would like to measure product line profitability and wants to include an allocation of service department costs in the analysis. How would you recommend the service department costs be allocated?

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