Resource Cost Assignment

Process by which cost is attached to activities. The process requires the assignment of cost from general ledger accounts to activities using resource drivers. For example, the chart of accounts may list information services at a plant level. It then becomes necessary to trace (assuming that tracing is practical), or to allocate (when tracing is not practical), the cost of information services to the activities that benefit from the information services by means of appropriate resource drivers. It may be necessary to set up intermediate activity cost pools to accumulate related costs from various resources before the assignment can be made.
See also activity cost pool ; resource cost driver .

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