Xyberspace Consulting, Inc, is a revision of the distribution of the costs of its training and education, Group Services (TESG), general services and support to its member departments. Currently, the company uses a single department, to allocate the actual cost of training in groups of users with the user groups TESG actual use of resources. The company is studying whether to allocate TESG fixed and variable costs separately, whether to use the budget or actual performance of distribution, and whether it should allocate costs based on the budget or actual use. This case is designed to give students exposure distribution of common services or support department costs, understanding the consequences of various distribution strategies and assessing whether and how the placement of the system may contribute to the strategy.
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by Luann J. Lynch Source: Darden School of Business 9 pages. Publication Date: November 15, 2000. Prod. #: UV0221-PDF-ENG