Cost Accounting Cost Allocation
Cost Accounting Cost Allocation involves the process of assigning and distributing costs to various cost objects, such as products, services, departments, or projects. This helps businesses determine the true cost of producing goods or providing services by accurately attributing indirect costs to specific cost centers. Cost allocation methods include activity-based costing, job costing, and process costing, among others. By implementing cost allocation techniques, organizations can make informed decisions regarding pricing, resource allocation, and performance evaluation.
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