Topic: Define Cost Allocation
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Answers to Common Questions
What is Cost Allocation?
Cost allocation is dividing up a company's costs between the different departments or cost centers. The costs are usually assigned based on how they relate to each department. Read More »
Source: http://answers.ask.com/Business/Other/what_is_cost_allocation
What Is Allocated Construction Cost?
Construction costs consist of the labor, materials, transportation, design, and any other expenses accrued during construction projects. An allocated construction cost method provides details about the outflow of cash so that managers can m... Read More »
Source: http://www.ehow.com/info_12150938_allocated-construction-cost.htm...
How to Calculate Cost Allocation
Cost allocation assigns a specific cost to a project. An example of a cost that needs allocation would be an electric bill for several different projects. A cost object is a task or a job. An example cost object would be manufacturing widge... Read More »
Source: http://www.ehow.com/how_7233045_calculate-cost-allocation.html?re...
More Common Questions
Answers to Other Common Questions
Opportunity cost is an economic term used in business to refer to the value of something given up to pursue something else. We'll clarify this concept with an easy example. Let's say you decide to go to college rather than work. The opportu...
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Source: http://www.ehow.com/how_4423131_define-opportunity-costs.html
Cost basis is defined as the amount of money originally put into an investment before any growth or loss. This includes the initial investment as well as fees and commissions paid to obtain the investment. Cost basis is primarily used to ca...
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Source: http://www.ehow.com/how_4421795_define-cost-basis.html
Business occupancy expenses, such as rent and utilities, may not easily be linked to specific departments because the expense is based on the total space you occupy, not the number of departments within the space. Companies can resolve this...
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Source: http://www.ehow.com/how_8659634_allocate-building-occupancy-costs...
Answer a factor that determines the cost of an activity. Cost drivers are analyzed as part of activity based costing and can be used in continuous improvement programs. They are usually assessed together as multiple drivers rather than sing...
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Source: http://wiki.answers.com/Q/What_does_cost_allocation_mean
Companies allocate costs so that all elements that are part of that cost share the incurred costs. It is like spreading the costs amongst those that use it. Companies allocate costs merely to assign responsibility of those costs to either s...
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Source: http://wiki.answers.com/Q/Why_do_companies_to_allocate_costs
Method of funding a pension plan through: (1) an individual level cost basis, where future benefits for the employee are estimated and contributions are made periodically while the employee is working to fund these future benefits; or (2) a...
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Source: http://www.answers.com/topic/cost-allocation-method
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.
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Source: http://www.answers.com/topic/traditional-cost-allocations
