Purchase Solution

Cost Accounting: How to change the single overhead pool cost allocation

Not what you're looking for?

Ask Custom Question

Art and Bert provide tax consulting for estates and trusts. Their job costing system has a single direct-cost category (professional labor) and a single indirect-cost pool (research support). The indirect-cost pool contains all the costs except direct personnel costs. All budgeted indirect costs are allocated to individual jobs using actual professional labor-hours.

What might be some ways for the firm to change from a one-pool allocation concept ?

Purchase this Solution

Solution Summary

The solution suggests several ways to reallocate indirect costs based on other allocation strategies.

Solution Preview

An important way of changing from one pool allocation is to divide indirect costs into activities like cost of documentation, communication costs and traveling cost. The cost of documentation can be allocated on the basis of the number of pages of the final report, the communication and ...

Purchase this Solution


Free BrainMass Quizzes
Understanding Management

This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.

Introduction to Finance

This quiz test introductory finance topics.

Employee Orientation

Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.

SWOT

This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.

Social Media: Pinterest

This quiz introduces basic concepts of Pinterest social media