Cost allocation I - michel beauregard · for Guiding Cost Allocation Decisions Cause and effect....

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Cost allocation I 1

Transcript of Cost allocation I - michel beauregard · for Guiding Cost Allocation Decisions Cause and effect....

Cost allocation I

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The terminology of cost allocation

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Allocating costs of support departments

An operating department adds value to a producer or service that is observable by a customer.

A support department provides the services that maintain other internal departments.

Support department cost allocation methods

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Exercises

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