Accounting Problem - Allocated Costs USAA
Please review United Services Automobile Association (USAA) and its treatment of allocated costs.
Retrieve any report of USAA that allocates common costs to a division, product, or service. Recast that report with unallocated costs and comment on the usefulness of that revised report.
If you cannot identify specific actual amounts, make a reasonable estimate and apply the tool as if the data were factual.
If you are unable to identify any report with allocated costs, create a report that you think may apply to your organization and treat the data as if it were factual.
Your report should include
? The name and nature of the organization
? The activity and time period you used
? The inputs you used
? Your results
? Any implications from your results
https://brainmass.com/business/accounting/accounting-problem-allocated-costs-usaa-131635
Solution Preview
The name and nature of the organization
United Services Automobile Association is a financial services conglomerate and its a Fortune 200 company. It provides banking, investing, and insurance services. Thus its into Banking, Insurance and Financial Planning.
http://en.wikipedia.org/wiki/USAA
Allocation of Costs
We will use activity based costing to allocate costs. Activity- based costing can be used to identify discrete activities as well as identifying the primary output measure for each activity. With using activity-based costing there are value added-activities and non- value added-activities. Value added-activities are activities ...
Solution Summary
The solution creates a report that discusses the allocated costs of an organization.