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Common costs are shared between the units ie departments or products. Traceable costs are specific to the unit. While I've never heard common costs being called untraceable they are cannot be traceable to the specific units while they are common to all units. They are either traceable or common.
All fixed operating expenses from overhead (indirect) departments
Finance is related to other departments because these departments need various cash flows to operate. The research department usually incurs some costs in order to carry out surveys and focus groups.
Purchasing departments research products and the costs of products to determine the best options. Purchasing departments are a big factor when you consider a company's ability to make a profit.
There are three basic methods to allocate service department costs to production departments or programs in a not-for-profit: (1) the direct method; (2) the step method; and (3) the reciprocal method.
Prior department costs behave the same as direct materials, which are typically added at the start of production. They are treated separately because they represent the accumulation of costs from previous departments rather than the receipt of materials from the stores area. It is helpful to separate prior department costs from other costs because the manager of the department receiving the transferred units has no control over the costs incurred in prior departments. Thus, the prior department costs are not useful for evaluating the performance of the manager of the department receiving the units.
Leased departments have such advantages as generating direct revenues, bringing new customers and cutting down on operational costs. The disadvantages include delayed payments and facing fierce competition.
sunk cost
Companies choose to outsource their IT support departments to reduce and control operating costs, improve company focus, gain access to world class capabilities, and share risks with a partner company.
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Both step-down method and reciprocal method belongs to the allocation metods which can be used to allocate support department costs to opertating department. (Now, I wanna tell you the three allocation methods are direct method, step-down method and reciprocal method.) First of all, the step-down method allocates some (but not all) support department costs to other support departments. Secondly, the first support department's costs are allocated to all operating and support departments that use its services. Then, each subsequent support department's costs are allocated to all operating and support departments that use its services, except any support department whose costs were already allocated. What's more, allocation order must be determined. For reciprocal method, first and foremost, the reciprocal method allocates all support department costs to other support departments. Secondly, the first step is to compute the total costs of each support department when its usage of other support department services is taken into consideration. In addition, support department costs are then allocated to all other operating and support departments that consume its services. I hope my answer can help your work. If I have some grammar mistakes, please point out, coz I am a Chinese adolescent. Thank you very much.
Because unit costs are computed by departments or processes at fixed time intervals.