Maurice Tutor

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    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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  • Professor
    Phoniex University
    Oct-2001 - Nov-2016

Category > Accounting Posted 20 Aug 2017 My Price 6.00

Door Industries Inc.

Service department charges

The Customer Service Department of Door Industries Inc. asked the Publications De- partment to prepare a brochure for its training program. The Publications Department delivered the brochures and charged the Customer Service Department a rate that was 25% higher than could be obtained from an outside printing company. The policy of the company required the Customer Service Department to use the internal publications group for brochures. The Publications Department claimed that it had a drop in demand for its services during the fiscal year, so it had to charge higher prices in order to recover its payroll  and  fixed costs.

Should the cost of the brochure be transferred to the Customer Service Depart- ment in order to hold the Customer Service Department head accountable for the cost of the brochure? What changes in policy would you    recommend?

Answers

(5)
Status NEW Posted 20 Aug 2017 09:08 AM My Price 6.00

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