Once set, fixed service department charges that are allocated to operating departments should not change because the operating department is effectively being assessed the cost of having the capacity to utilize the services.
what is fixed service department?
All of the fixed costs for the service department are determined by the budget. Fixed Services refer to the provision of telecommunications services via a fixed connection or a system that offers customers access to public fixed network connections.
What are operating departments?
The production process is completed from beginning to end thanks to an operations department. The objectives and responsibilities of other departments within a corporation must be in accord with these production processes.
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