Question: What is cost allocation? Why do companies choose particular allocation methods? Can all costs be allocated using the same cost driver? Why or why not?

What is cost allocation? Why do companies choose particular allocation methods? Can all costs be allocated using the same cost driver? Why or why not? Why do we need it

?

Please give a few examples.

Prompt

2

: Why should unit cost data be frequently interpreted with caution? What factors should be taken into account?

Prompt

3

: What are cost behaviors? How do we know if a cost is direct or indirect? Please give some examples to illustrate different types of costs.

Prompt

4

: Please explain how manufacturing, merchandising and service companies differ. What costs will they each have and why?

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Cost Allocation Cost allocation is the process of assigning indirect costs to products services or departments based on a reasonable allocation method Companies choose particular allocation methods to ... View full answer

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