--%>

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 : Avoidable interest The amount of

      The amount of interest that an organization would have avoided if it had not made the expenditures for an asset. Avoidable interest is calculated when an entity is self- constructing an asset. The cost of the asset can include material, labor, and overhead plus some interest. The c

  • Q : Regions of decision making process What

    What are the possible broad regions of decision making process where management accounting information is required?

  • Q : Basic accounting principles or concepts

    ACCOUNTING CONCEPTS: Presented below are basic accounting principles or concepts, with which hospital managers should be familiar and that they should understand i

  • Q : What is Incremental Cost Incremental

    Incremental Cost: The raise or reduction in total costs which would result from a decision to raise or reduce output level, to add a service or task, or to modify any part of operations. This information aids in making decisions such

  • Q : Features of partnership Write some main

    Write some main features of partnership? Answer: Essential elements or major features of Partnership are as follows: A) Two or m

  • Q : What is Variable Cost Variable Cost : A

    Variable Cost: A cost which differs with changes in the level of an activity, whenever the other factors are held constant. The cost of material treating to an activity, for illustration, differs according to the number of material de

  • Q : Key elements of the Shell’s ethical code

    What are the key elements of the Shell’s ethical code? Describe in brief?

  • Q : What do you mean by the term SWOT

    What do you mean by the term SWOT analysis? Explain in brief?

  • Q : Illustrate the effect of tax on the

    The U.S. market for rice is illustrated below.   The world pric

  • Q : Main working areas of the Routing and

    Write a short note on the main working areas of the Routing and personnel department?