If the business is operating more than one department, then its recommended that an Administration Section - Profit & Loss Account be established and that the costs of supplying administrative services to the other departments be recorded within this profit centre. An Administration Service Charge should also be established for charging, on a monthly basis to those other departments, to recover the costs of administration.
This paper is presented under the headings:
- Administration Costs
- Charging To Profit Centres
- Administration Charge Allocation
