Treatment of allocated costs


Problem: In this assignment, you are going to review your organization and its treatment of allocated costs.

Retrieve a report in the organization that allocates common costs to a division, product, or service. Recast that report with unallocated costs and comment on the usefulness of that revised report.

If you cannot identify specific actual amounts, make reasonable estimates for the report. When you make estimates indicate the method used to derive such numbers.

Your report should include

* The name and nature of the organization
* The activity and time period you used
* The inputs you used
* Your results
* Any implications from your results

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Accounting Basics: Treatment of allocated costs
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