Department profitability

Department profitability varies depending on direct costs as well as indirect cost
allocation. Should bonuses be based on profitability that is based on total costs, profitability based on only
direct costs, or some other measure? (Think about what you learned in Chapters 5 & 6, and the profit equation,
Profit = Revenues – Expenses, and what control managers have on the variables.)

Sample Solution

ACED ESSAYS