There are two topicschoose one of them Coursework

There are two topicschoose champion of them - Coursework ExampleBy allocating the costs by their using departments, departmental decision making is enhanced. The marketing department cannot be held accountable for the wastage or spoilage incurred by the grinding department. The department generating high production levels is not affected by an new(prenominal) departments operating activities.Applying the traditional cost alternative, the costs of all the departments are lumped into one cost account (Debarshi, 2011, p. 178). Consequently, the department producing the avoidable production wastes and spoilage can be erroneously make to explain ones wasteful production process charge. This is because the total expenses and costs of all the departments are evenly divided among all the wasteful and not wasteful departments.Further, allocating the costs by departments will get out the implementation of favorable cost center-based strategies. Under the strategy, each department is respons ible for its own profit, expense, revenue, or other financial accounts (Kinney, 2012, p. 26). For example, the costs and operating expenses of the fast marketing department are deducted from the revenues of the same fast selling branch or department. Likewise, the costs and operating expenses of the irksome selling department are deducted from the revenues of the same slow selling branch or department. This way, management can determine whether each department performed financial fracture than the other departments.In terms of areas where judgment may be needed, the computation of the overhead allocation includes categorizing expenses gibe to direct costs and indirect costs (Mittal, 2010, p. 23). For example, wood, nails, and paint are classified as direct materials of the article of furniture manufacturing company because wood, nails, and paint form part of the completed chair. Direct labor cost includes amount stipendiary to the individuals directly making the product. For ex ample, the salary payment of the carpenter making the chair is direct