Allocation Methods Cost Accounting
Allocation Methods Cost Accounting refers to the various techniques and approaches used to distribute or assign indirect costs to products, services, or departments within an organization. These methods help in determining the actual cost of production or operation by allocating common expenses based on certain criteria such as labor hours, machine hours, or square footage. Some common allocation methods include activity-based costing, job costing, process costing, and variable costing. These methods play a crucial role in accurately assessing the profitability and performance of different segments of a business.
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