Answer the Following Questions

Essay

Answer the following questions:
a)What are the three methods of allocating support department costs?
b)Which of these methods recognizes interactions between departments? Explain.
c)Which of these methods has the potential to be most accurate? Why?
d)Assume you are working for an organization and are asked to allocate support department costs. Describe how you would choose the best method.
e)Suppose a company uses the method you identified in part (c)to allocate support costs. Do the support cost allocations represent the incremental cost of providing support services? Why or why not?