Prior work has examined models in which the reciprocal cost allocation method yields allocation rates that are equal to the marginal costs of operating service departments. We extend this work by ...

Many organizations have departments that provide services to other departments. For example, a janitorial department delivers services to the rest of a company, including the production departments ...

This is a preview. Log in through your library . Abstract This study proposes a new method for approximating service department costs when reciprocal services exist. Analytical results are provided ...