Allocation of costs accounting module 4 case assignment
The following link describes an organizations approach to allocation of costs.
You are required to read the above article and to discuss the various issues of cost allocation in a 2 page paper by addressing the issues below:
Describe the process of allocation of costs in this organization. Do you agree with the approach? Why or why not?.
Identify those situations when common costs are allocated.
Explain the impact of allocating common costs for internal decision making.
Explain the impact of not allocating common costs for internal decision making.
How is the decision making in this organization affected by the manner in which costs are allocated? Provide numerical support as needed.