Allocating Fixed Costs

Related BrainMass Solutions

• Process of allocation of IT costs: lean or abc

  So, the merry-go-round of allocating fixed costs is non-value added and so the least effort should be used to accomplish the goal. The example given was to allocate a fixed price per day per project and not distinguish between projects.

• Cost allocation

  159457 Allocating Costs Equitably Among Divisions See the attached file. Allocating Costs Equitably Among Divisions This is a practice question I am having problem solving. Thanks and happy holidays.

• How does ABC costing differ from traditional allocation

  Is ABC just a method of allocating overhead costs? If not, discuss. ABC is considered both a way of allocating but also a way of managing.

• Why do companies account for fixed costs on a per unit basis

  Allocating fixed costs to products promotes more of a companywide interest in profits because mid level managers will have to respond to changes in fixed costs as well as direct costs.

• Overhead Allocation Using Different Cost Pools

  How accurate is this method of allocating costs? 5.

• Cost allocation

  If the area/product/division needs finer grained information, then you have the "shared fixed cost" problem discussed below. SHARED FIXED COSTS: There is no good approach to allocating fixed costs that are not segment or product specific. Why?

• How does ABC costing differ from traditional allocation meth

  Is ABC just a method of allocating overhead costs? If not, discuss. Q: How does ABC costing differ from traditional allocation methods?

• American Association of Acupuncturists: allocating all costs

  The common costs are fairly fixed and so allocating them will be based on some arbitrary method not reflective of their actual use of common resources.

• West Chemical, Joint Costs, allocate physical units NRV

  You need incremental revenues and incremental costs. The reason is to see if you gain more by processing than it would cost.   3.When allocating joint costs, what is the meaning of death spiral?