Yes, cost allocation allows managers to study how product costs are affected by changes in the environment. They also help the organization determine profit maximization strategies.
Yes, it is. When used for allocating costs, a cost driver is often called a cost-allocation base
Cost allocation allows a company to determine the amount each item produced will cost. An effective cost allocation will be able to track down the shared costs of production not only to the divisions but also to the products and customers that use those costs.
Cost allocation...
Primary distribution overhead cost is also called Departmentalization of overheads. It involves apportionment and allocation of overhead costs in the service and production departments.
A construction loan calculator could provide a rough or maybe even exact estimate on the cost for a construction project given that one has all required components for calculation.
1.Relevant cost helps provide a consistent basis for the comparison of alternative proposal. 2.Relevant cost deal with the quantitative aspects of decisions.
allocation rate=cost pool amount/ cost driver volume
no
Cost objectives determines the cost allocation. It determines the product, service or department that will receive the allocation.
Yes, it is. When used for allocating costs, a cost driver is often called a cost-allocation base
The cost to survey 214 acres of land can vary depending on factors such as the complexity of the terrain, accessibility, and local surveyor rates. On average, land surveyors charge between $500 to $2,000 per acre, so for 214 acres, it could cost anywhere from $107,000 to $428,000. It is best to contact local surveyors for accurate cost estimates.
cost accumulation is the collecting and gathering of all cost and become collected
allocate cost arbitrarily
Cost allocation allows a company to determine the amount each item produced will cost. An effective cost allocation will be able to track down the shared costs of production not only to the divisions but also to the products and customers that use those costs.
The following are the differences between allocation and apportionment. 1. Allocation costs are directly allocated to cost centre. Overhead which cannot be directly allocated are apportioned on some suitable basis. 2. Allocation allots whole amount of cost to cost centre or cost unit where as apportionment allots part of cost to cost centre or cost unit. 3. No basis required for allocation. Apportionment is made on the basis of area, assets value, number of workers etc.
A cost is considered relevant if:
Cost allocation...