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Accounting Question

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Question;Attached is the question. Please provide a detailed answer.The customer;service department of Grand Lakes Technologies asked the publications;department 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 pay-roll and fixed costs.;Should the cost of;the brochure be transferred to the customer service department in order to hold;the department head accountable for the cost of the brochure? What changes in;policy would you recommend?

 

Paper#42403 | Written in 18-Jul-2015

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