Cost Allocation
Question 1. Why does the US Army Corp of Engineers worry about cost allocations? Aren't they a branch of the US Federal Government? Why does it matter whether or not costs are allocated?
Question 2. The City of Seattle reading lists a series of costs and associated cost drivers for allocating these costs. Do you agree with the cost drivers (cost allocation factors)? Why do you suppose these drivers were selected? Does it make sense to have all of these individual costs and drivers identified or should there be a more uniform method of allocating costs? Why do they allocate costs anyway in a government (City Government) setting -- aren't cost allocation methods mostly for manufacturing companies?
Question 3. Why does the US Department of Human Services have a special division just for Cost Allocation? What are some of the ways in which they adminster cost allocation for hospitals, colleges, and non-profit organizations?
Question 4. Is cost allocation only relevant for govenment agencies like those above? Why or why not? Support your arguments with references or examples as appropriate.
Attachment:- Cost allocation.rar