--%>

Explain Cost Allocation

Cost Allocation: This is a technique of assigning costs to activities, outputs, or other cost objects. The allocation base employed to assign a cost to objects is not essentially the cause of the cost. For illustration, assigning the cost of power to machine actions by machine hours is an allocation since machine hours are an indirect measure of the power utilization.

   Related Questions in Managerial Accounting

  • Q : Effect of illegal obligations on cost

    Normal 0 false false

  • Q : What is Outcome Outcome : The outcomes

    Outcome: The outcomes of a program activity as compared to its intended aims. Program outcomes might be computed in terms of service or product quality and quantity, customer satisfaction, and usefulness.

  • Q : Adjunct account An account in financial

      An account in financial reporting that increases the book value of a liability account. An adjunct account is a valuable account from which cred

  • Q : Explain Performance Measurement

    Performance Measurement: A means of computing effectiveness, efficiency, and outcomes. A balanced performance measurement score-card comprises financial and non-financial measures focusing on the quality, cycle-time, and price. The performance measure

  • Q : Explain Investor Accounting Investor

    Investor Accounting: It is an individual who commits money to investment products with the hope of financial return. Usually, the primary concern of an investor is to diminish risk whereas maximizing return, as opposed to a speculator, who is willing

  • Q : How useful is the management accounting

    Briefly define how useful is the management accounting information is?

  • Q : Key performance indicators or KPI What

    What do you mean by the term key performance indicators or KPI? Explain in brief?

  • Q : Aging of Accounts What are Aging of

    What are Aging of Accounts? Briefly illustrate it.

  • Q : How strategic management process can be

    What are the various modes that the strategic management process can be approached?

  • Q : Cash coverage of growth A financial

    A financial analysis tools that measures the need for financing. The formula is the cash-flow from operating activities divided by the cash paid for long-term asset. Cash paid for long-term assets can be found on the statement of cash-flow, in the investing-activities