ACC 281 Product Costing
From your text and at least one scholarly source, describe how service center costs are allocated using the various allocation methods. Illustrate its use by using a health care example.
Epstein, L. & Schneider, A. (2014). Accounting for Health Care Professionals. San Diego, CA: Bridgepoint Education, Inc.
In an organization, there are departments that are not directly involved in the production of goods or services. Such departments are called service departments. There are certain costs that are incurred in running such a department and they are known as service center costs. These departments are quite crucial in the organization despite their lack of involvement in the overall production of the goods or services. For instance…