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in this video weamp;#39;re going to discuss three ways to allocate the costs of multiple support departments when those support departments are providing services to each other so letamp;#39;s take a company that has two operating divisions they manufacture rollerskates and one division and ice skates in the other now letamp;#39;s say that this company also has to support departments that provide services to the roller skate and ice skate divisions theyamp;#39;ve got an HR department that has $30,000 in costs and then they have an administrative staff division that has $40,000 in costs now hereamp;#39;s the catch the HR department and the admin staff departments provide services to each other as well as providing services to these different departments so the question is how do we allocate the 30,000 and cost with HR in the $40,000 in cost with the admin staff how do we account for the fact that they help each other and thereamp;#39;s three different ways that you can do that and
