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What is the Formula for cost allocation rate?
allocation rate=cost pool amount/ cost driver volume
Is the selection of an appropriate cost allocation base more important for a single-stage cost allocation system than it is for a two-stage cost allocation system?
no
What is arbitrary allocation in cost accounting?
allocate cost arbitrarily
What is the difference between overhead allocation with overhead apportionment?
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.
The tracing or reassigning of costs to one or more cost objectives is referred to as?
cost allocation
What is cost objectives?
Cost objectives determines the cost allocation. It determines the product, service or department that will receive the allocation.
What is the Formula for cost allocation rate?
allocation rate=cost pool amount/ cost driver volume
Is the selection of an appropriate cost allocation base more important for a single-stage cost allocation system than it is for a two-stage cost allocation system?
no
How does market and government differ in allocation of resources?
the difference in market and government occurs in the allocation of resources and labor division which determines the prices
Is cost allocation base a cost driver?
Yes, it is. When used for allocating costs, a cost driver is often called a cost-allocation base
What is arbitrary allocation in cost accounting?
allocate cost arbitrarily
Importance of cost allocation?
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.
What is the difference between overhead allocation with overhead apportionment?
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.
What is the process of assigning indirect costs?
Cost allocation...
What is cost absorption in cost accounting?
Simply: allocation of cost to a cost centrehttp://www.answers.com/topic/cost-absorption:Allocation of cost to a product, process, or department using a rational allocation basis. For example, rent expense can be allocated to a department based on square footage.
Why is human resources important to the development of industry?
How the opportunity cost can be applied to the production process for the allocation of resources. How the opportunity cost can be applied to the production process for the allocation of resources.
The tracing or reassigning of costs to one or more cost objectives is referred to as?
cost allocation
