Describe methods which may be used to allocate support costs within organizations containing multiple support departments.

1. Describe methods which may be used to allocate support costs within organizationscontaining multiple support departments. Discuss advantages and disadvantages of thevarious methods.2. You are the chief financial officer of a lumber mill, and you are becoming quite concernedabout the spoilage, scrap, and reworked items associated with your production processes.Your firm produces mainly products for the building industry.Required:Discuss the problems associated with these items and the methods your company can use toreduce spoilage, scrap, and reworked items.

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