Cost allocation: what purpose does it serve?
Abstract
Regardless of the approach taken to allocating common costs, is cost allocation really necessary? Argues that such an exercise may not make any difference to the final outcome ‐ the company’s final profit or loss figure. Takes as an example the University of Clemson, USA’s system of costing and reporting, and describes the university’s Finance Committee’s challenge to that system.
Keywords
Citation
Doost, R.K. (1996), "Cost allocation: what purpose does it serve?", Managerial Auditing Journal, Vol. 11 No. 8, pp. 14-22. https://doi.org/10.1108/02686909610131648
Publisher
:MCB UP Ltd
Copyright © 1996, MCB UP Limited