Asked by Kennedy Brame on Jul 02, 2024
Because support department costs are indirectly related to production, they are applied to products as part of overhead.
Support Department Costs
Support Department Costs are expenses incurred by service departments within a company, such as human resources or maintenance, that do not directly contribute to revenue but provide essential support to profit-making operations.
Indirectly Related
Pertaining to elements or factors that have an influence on a situation or outcome but are not a direct cause or effect.
- Acknowledge the critical nature and hurdles associated with the accurate assignment of support department expenses.
- Identify the differences between direct and indirect costs relating to support departments.
Learning Objectives
- Acknowledge the critical nature and hurdles associated with the accurate assignment of support department expenses.
- Identify the differences between direct and indirect costs relating to support departments.
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