Overhead allocation is the process of spreading overhead (indirect costs) back to certain jobs, products or cost centers. Use Coca colas different product line like Dasani water and powerade sports drink. How would you define the overhead accounts, and what method would you choose to use to allocate these accounts back to the job, product, or cost center? Discuss the method you have chosen and include some advantages and disadvantages of this method. How can the assignment of overhead costs affect operations and profit reporting?

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Overhead means indirect cost that need to be allocated on final product If the cost is easily identi... View the full answer