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Author Question: A company sets up cost pools for indirect cost allocation. Management sees clear cause-and-effect ... (Read 567 times)

sabina

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Question 1

Should a company allocate its corporate costs to divisions?

Question 2

A company sets up cost pools for indirect cost allocation. Management sees clear cause-and-effect relationships between the incurrence of costs and the chosen the cost-allocation base. What other common relationships or basis with a cost allocation base might management utilize to allocate costs?
◦ R&D expenses
◦ benefits -received
◦ Capital investment in a related process
◦ gross profit proportions


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Marked as best answer by sabina on Mar 6, 2021

HandsomeMarc

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