Sample Essay on:
Cost Allocation in Government Departments

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Essay / Research Paper Abstract

This 5 page paper answers four questions set by the student, looking at how and why costs allocated within government departments when they are not manufacturing or commercial enterprises. Issues such as the need to allocate costs, the reasons cost drivers may be chosen and the importance of cost allocation all discussed. The bibliography cites 5 sources.

Page Count:

5 pages (~225 words per page)

File: TS14_TEgovcosts.rtf

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Unformatted sample text from the term paper:

cost allocation. As they are part of the government they need to be held accountable both to government and through government to the electorate due to the nature of funding. The Army Corp. of Engineers have the same responsibilities of the government departments, the need to provide value and be accountable for the funds they use, as well as the ability to justify the funds which are used or requested. Like any government department there are likely to be many demands for services provided, without the provision of unlimited resources. This means that the organization also needs to have a clear understanding of the way in which they are incurring costs in order to maximize the use of resources and prioritize the most important tasks (Chyssides and Kaler, 1998). If resources are to be maximized, and the organization is to achieve its goals planning and budgeting needs to take place. Many costs may be transparent where they are directly incurred, but many other costs, often referred to as overheads, are more difficult to allocate but they are are still needed, such as the general administration and different running costs of the Army Corp. of Engineers. If projects and tasks are to be undertaken, they are not only using a direct resources which are easy to account for, there are also using many of the support aspects. It is only by allocating the costs that the total budget for running the department can be assessed, and once the total cost unknown they are more likely to be more effectively managed. Therefore, the allocation of costs is essential as a control mechanism to ensure that goals are reached, that resources are maximized and the department can remain accountable as a result of using funds from the public purse. Question 2 The city ...

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