Common Cost Allocation at Wal-Mart
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Retrieve any report in Wal-Mart 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
Be sure you do the recasting of the report - this means a numerical table must be prepared with your report.
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This solution discusses the allocation of common costs to a product, division or service at Wal-Mart in 405 words
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Wal-Mart: Allocation of Cost
Introduction
This paper discusses the allocation of common costs to a product, division or service. For this purpose, an organization has been selected and some of its common costs have identified and their allocation has been done. For this purpose, the cost has been divided on the basis of the divisions. The allocation of the cost consists of three key steps. First, the suitable objectives of cost should be selected, then, the relevant cost data should be selected and ...
Education
- MBA (IP), International Center for Internationa Business
- BBA, University of Rajasthan
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