Converse a support department from current or former place of business, being sure to address the subsequent points:
1. Explain the department and its function
2. What do you think are most significant direct costs incurred by this support department (e.g. labor costs, supplies, depreciation, outside services, etc)?
3. Do you believe those costs are fixed, variable or a combination of both....and why?
4. If you know the method of allocation really used, please describe it. Otherwise, what would you recommend as a method of allocation?