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Airtran Airways - Allocated Costs

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I need assistance with the following analysis:

Find a report in the AirTran organization that sets aside common costs to a service/product/divison. Create a new report with unallocated costs and discuss how useful the new report is.

Include:

The organization name and nature
Time period/activity used
Inputs
Results
Implications

Reference:
www.airtran.com

Thanks in advance for your time and assistance!

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Solution Summary

This solution discusses unallocated costs in an organization.

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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 which customers are willing to pay for or show that after the process there will be a profit. Non- value activities are activities which customers are not willing to pay for or activities which do not show future profit. The ...

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