Show all work using Excel formulas (you must submit an Excel worksheet showing your work) FPPT Clinic offers Family Practice and Physical Therapy services at its location. The Family Practice Department generates $4,000,000 in revenue per year and the Physical Therapy Department generates $850,000 in revenue per year. The Family Practice Department occupies 80,000 square feet and the Physical Therapy Department occupies 40,000 square feet. Expenses for the departments are: Salaries/Wages & Benefits Other Expenses Family Practice $1,885,000 $1,226,000 Physical Therapy $400,000 $261,111 The Clinic is supported by three cost centers - Human Resources, Accounting, and Housekeeping services. Cost for those services are: Human Resources: $100,000 Accounting: $100,000 Housekeeping: $75,000 Allocate the costs for each of the three cost centers to the Family Practice Department and Physical Therapy Department. For each cost center, select a driver that you think is fair and allocate the cost pool for that cost center. Complete a P&L for the Family Practice Department and for the Physical Therapy Department.
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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