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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.

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What are the advantages of relevant cost?

1.Relevant cost helps provide a consistent basis for the comparison of alternative proposal. 2.Relevant cost deal with the quantitative aspects of decisions.


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 cost objectives?

Cost objectives determines the cost allocation. It determines the product, service or department that will receive the allocation.


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


How much does it cost to survey 214 acres of land?

The answer depends on the pay rate of surveyors in the relevant country and region, Since you have not bothered to share that crucial bit of information, I cannot provide a more useful answer.The answer depends on the pay rate of surveyors in the relevant country and region, Since you have not bothered to share that crucial bit of information, I cannot provide a more useful answer.The answer depends on the pay rate of surveyors in the relevant country and region, Since you have not bothered to share that crucial bit of information, I cannot provide a more useful answer.The answer depends on the pay rate of surveyors in the relevant country and region, Since you have not bothered to share that crucial bit of information, I cannot provide a more useful answer.


Why a cost accumulation system is required for generating relevant cost information for decision making?

cost accumulation is the collecting and gathering of all cost and become collected


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.


A cost is considered relevant if it is avoidable and future and cash?

A cost is considered relevant if:


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.