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Michigan State University Chapter 5 Allocation of Support Department Costs Discussion
Discussion 1
?When the capacity of an organization to produce goods or services and the demands of its customers to purchase goods or services is not matched, then the result is inefficiency, either in under-utilized resources or dissatisfied customers.
Address the following requirements:
* Choose a Saudi Arabian organization that produces either a good or service and describe its capacity and demand concerns.
* Develop an equation to calculate its capacity. ?
* Define lead strategy, lag strategy, and match strategy, and recommend which your selected organization should pursue and why.?
Discussion 2??
Chapter 5 in the textbook provides examples of allocation of support department costs in manufacturing settings for determining product costs. Why would allocation of support department costs be important in-service businesses, such as hospitals or universities?
