Allocating indirect costs without using cost drivers. A cause-and-effect relationship may not exist between the cost and the base used for the allocation.
| Accounting Dictionary: Traditional Cost Allocations |
Allocating indirect costs without using cost drivers. A cause-and-effect relationship may not exist between the cost and the base used for the allocation.
| 5min Related Video: Traditional Cost Allocations |
| Activity-Based Management |
Copyrights:
![]() | Accounting Dictionary. Dictionary of Accounting Terms. Copyright © 2005 by Barron's Educational Series, Inc. All rights reserved. Read more |