cost allocation base
1allocation base — In management accounting, the basis that is used to allocate costs to cost objects. In a traditional costing system there may be a single allocation base for each cost object, whereas in an activity based costing system there may be many such… …
2allocation base — In management accounting, the basis that is used to allocate costs to cost objects In a traditional costing system there may be a single allocation base for each cost object, whereas in an activity based costing system there may be many such… …
3cost allocation — The process of assigning costs to one or more cost objects when it is not possible to trace a cost directly. Indirect costs (overheads) always have to be assigned to cost objects using cost allocations. The basis on which costs are assigned to… …
4cost allocation — The process of assigning costs to one or more cost objects when it is not possible to trace a cost directly. Indirect costs (overheads) always have to be assigned to cost objects using cost allocations. The basis on which costs are assigned to… …
5cost driver — In a system of activity based costing, any factor such as number of units, number of transactions, or duration of transactions that drives the costs arising from a particular activity. When such factors can be clearly identified and measured,… …
6cost driver — In a system of activity based costing, any factor such as number of units, number of transactions, or duration of transactions that drives the costs arising from a particular activity When such factors can be clearly identified and measured, they …
7arbitrary allocation — A cost allocation in which the allocation base used is not likely to give accurate costs. For example, the cost of a lecture is not significantly dependent on the number of students: a class of 10 students requires one lecturer for (say) one hour …
8arbitrary allocation — A cost allocation in which the allocation base used is not likely to give accurate costs. For example, the cost of a lecture is not significantly dependent on the number of students: a class of 10 students requires one lecturer for (say) one hour …
9cause-and-effect allocation — A cost allocation in which the allocation base is a significant determinant of the cost. To ensure that indirect costs are accurately assigned to cost objects, managers need to use cause and effect allocations rather than the arbitrary… …
10cause-and-effect allocation — A cost allocation in which the allocation base is a significant determinant of the cost. To ensure that indirect costs are accurately assigned to cost objects, managers need to use cause and effect allocations rather than the arbitrary… …
