City Inspections has three departments using the services of the Legal Department. Total monthly shared legal department cost is $20,000. The Annual inspections department has 5 employees that used 100 hours of legal services. The Emergency services department has 8 employees that used 200 hours of legal services. The Roads Division has 7 employees that used 300 hours of legal services. Which is the best method to allocate shared legal costs?

Question

Quizplus · Accepted Answer

The best method to allocate shared legal costs among the departments is based on the number of hours of legal services used by each department. This approach directly ties the cost to the actual consumption of legal services, making it the most equitable and reflective of each department's use of the legal department's resources.

City Inspections Has Three Departments Using the Services of the Legal