Thus it does not attempt to allocate fixed costs in an arbitrary manner to different products.
It is a conventional method of cost accounting that traces direct costs and allocates indirect costs.
The system is having a difficult time determining how we allocate costs - the treasurer's salary and the president's salary.
The study also allocates "soft costs," such as architect and engineering fees, to all components of the building.
Few banks can accurately allocate costs and measure the profitability of each line of business.
Explore strategies for cost allocation plans and logical ways to allocate shared costs across different funding streams.
The problems it has to address are how to fairly allocate costs for production capacity, which is not used.
Some cost accounting practices such as activity-based costing will allocate fixed costs to business activities for profitability measures.
This calculation is hindered by the difficulty in allocating costs to individual relationships and the ambiguity regarding relationship cost drivers.
See the page in this guide on how to allocate environmental costs to specific processes.