Accounting

posted by .

Cost Allocation is a method to identify and distribute indirect costs. Direct costs are costs assignable to a specific cost objective, whereas indirect costs are costs incurred for multiple cost objectives or not assignable to a specific cost objective without effort disproportionate to the benefit received.


The benefits received through Cost Allocation follow the law of diminishing returns, represented by an S-Curve. In short, there comes a point where increased effort no longer results in a notable increase in precision.

How can Cost Allocation be used in an organization's strategic goals? Explain

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. economics

    Suppose a company has the following costs: Labor $400 Equipment $300 Materials $100 A)What is the total accounting cost?
  2. Financial officer Interview

    1.Briefly describe your current position and its duties and responsibilities. 2.What are the revenue centers for your organization 3.What types of centers (departments) have budgets?
  3. business

    Building from the project you created in Unit 1, Identify all of the costs involved in the project. Label the costs either direct costs, project overhead costs, or general and administrative overhead costs. Develop a time-phased budget …
  4. Cost Accounting

    What are the differences between a direct cost and an indirect cost?
  5. Accounting

    Costs can be classified into two categories, fixed and variable costs. These costs behave differently based on the level of sales volumes. Suppose we are running a restaurant and have identified certain costs along with the number …
  6. Law

    •Provide a chart showing some of the basic costs of crime, including indirect costs (such as emotional costs) and economic costs. •Discuss the concept of indirect costs of crime. •List at least three indirect costs of crime. …
  7. Cost Analysis

    Does indirect costs often depend on some or all of the direct costs?
  8. Accounting 7

    Job 31 has a direct materials cost of $300 and a total manufacturing cost of $900. Overhead is applied to jobs at a rate of 200 percent of direct labor cost. Use the relationships among total manufacturing costs, conversion cost, and …
  9. Accounting 7

    Job 31 has a direct materials cost of $300 and a total manufacturing cost of $900. Overhead is applied to jobs at a rate of 200 percent of direct labor cost. Use the relationships among total manufacturing costs, conversion cost, and …
  10. Accounting

    What equation was used to get the answer in requirement 3?

More Similar Questions