Required: 1. Allocate the HR costs to each producing department for Year 1 and Year 2 using the direct method with actual direct labor hours and actual HR costs. 2. Discuss the following statement: “The costs of human resource-related matters increased by 25 percent for Department A and decreased by over 16 percent for Department B. Thus, the manager of Department B must be controlling HR costs better than the manager of Department A.” Which of the four data analytic types—descriptive, diagnostic, predictive, or prescriptive—is used to determine how well the managers are controlling human resources costs. (See Exhibits 2.5 and 2.6, pp. 37, 40, for a review of data analytic types.) 3. Can you think of a way to allocate HR costs so that a more reasonable and fair assessment of cost control can be made? Explain

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Required: 1. Allocate the HR costs to each producing department for Year 1 and Year 2 using the direct method with actual direct labor hours and actual HR costs. 2. Discuss the following statement: “The costs of human resource-related matters increased by 25 percent for Department A and decreased by over 16 percent for Department B. Thus, the manager of Department B must be controlling HR costs better than the manager of Department A.” Which of the four data analytic types—descriptive, diagnostic, predictive, or prescriptive—is used to determine how well the managers are controlling human resources costs. (See Exhibits 2.5 and 2.6, pp. 37, 40, for a review of data analytic types.) 3. Can you think of a way to allocate HR costs so that a more reasonable and fair assessment of cost control can be made? Explain

 

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