(Solution) - Lackawanna Community College has three divisions Liberal Arts Sciences and -(2025 Original AI-Free Solution)

Paper Details

Lackawanna Community College has three divisions: Liberal Arts, Sciences, and Business Administration. The college's comptroller is trying to decide how to allocate the costs of the Admissions Department, the Registrar's Department, and the Computer Services Department. The comptroller has compiled the following data for the year just ended.
Department Annual Cost
Admissions ................................................................................................................ $ 90,000
Registrar ......................................................................................................................150,000
Computer Services.......................................................................................................320,000

Required:
1. For each department, choose an allocation base and distribute the departmental costs to the college's three divisions. Justify your choice of an allocation base.
2. Would you have preferred a different allocation base than those available using the data compiled by the comptroller? Why?