Cost allocations are an important part of Anthony’s Orchards budgeting system. Anthony’s Orchards is reviewing the way decision rights are partitioned throughout the company. Using Anthony’s Orchards website and your Required and/or Optional Resources, answer the following Discussion question:
Why is it important to continue to allocate costs? Would you recommend that Anthony’s Orchards continue to allocate costs? Why or why not? How would you recommend allocating the purchasing department to the three cost centers? What is the basis for your decision, i.e., number of apples used, etc.?