Topic: Overview of Cost Allocation
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...
Featured Content: Overview of Cost Allocation
Today's organizations face growing pressure to control costs and enable responsible financial management of resources. In this environment, your organization ... More »
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Answers to Other Common Questions
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... Read More »
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... Read More »
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... Read More »
Source: http://wiki.answers.com/Q/Why+do+companies+allocate+costs
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. Read More »
Source: http://www.answers.com/topic/traditional-cost-allocations
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... Read More »
Source: http://www.answers.com/topic/cost-allocation-method
Depreciation. Read More »
Source: http://wiki.answers.com/Q/What_is_the_systematic_allocation_of_a_...
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