Cost allocation base:- Cost allocation base is some factor or variable that is used to allocate costs in a
cost pool to cost objects. An example of a cost
allocation base may be the weight of materials handled for each production
department that uses material handling services.This base would be
used to assign the costs in the material handling cost pool to the production
departments.
Explore Business Study Tool for expert insights on accounting, management strategies, and business profitability. Perfect for students, professionals, and entrepreneurs seeking practical knowledge and tools to succeed in the business world.
Post a Comment