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    Allocation of Indirect cost

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    How do companies decide what allocation bases to use to allocate indirect costs to departments?

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    https://brainmass.com/business/management-accounting/allocation-indirect-cost-187331

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    The response addresses the queries posted in 422 words with references.
    //Cost includes indirect as well as direct cost. These costs are allocated to different departments for the optimum utilization of resources. There are different bases according to which indirect costs are allocated to the various departments of an organization.//

    An organization or a company refers to an association of a group of people who have come together to achieve certain common goals that cannot be achieved individually. The cost so incurred is of two types, direct and indirect. The direct costs include those costs that can be directly identified with the production of the products or services of the company. Indirect costs are those ...

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    This response addresses the queries posed in 422 Words, APA References.

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