Question

Memorial services, incorporated (msi) has three service departments (it, accounting, and hr) and two production departments (west and east). The usage data for each of the service departments for the previous period follow: it - 0, accounting - ?, hr - ?, west - ?, east - ?. What is the usage data for the accounting department?

1) 0
2) Cannot be determined
3) Not enough information provided
4) Other

Answer 1

The usage data for the accounting department in Memorial Services, Incorporated cannot be determined without additional information or the specific usage percentages, ratios, or allocation methods.

Step-by-step explanation:

The question pertains to internal cost allocation within a company known as Memorial Services, Incorporated (MSI). The usage data for the service departments are necessary for allocating overhead costs to the production departments. Without having the actual numbers or a method provided for determining the usage data of the accounting department, we cannot accurately determine what the usage data is. Therefore, the correct answer is '2) Cannot be determined'. It's necessary to have the actual usage percentages, ratios, or a method of allocation provided to determine the accounting department's usage. Without this data, we cannot allocate costs to the production departments or understand the internal services rendered by accounting.