The meaning of ACTUAL COST is cost based on the most factual allocation of historical cost factors.
In activity-based costing this refers to the allocation of the cost of activities (determined bystage 1 allocations) to the cost objects such as products or services. Related Q&A What is cost allocation? What is the meaning of systematic and rational allocation?
allocation [ al-uh-key-shuhn ] Phonetic (Standard)IPA noun the act ofallocating;apportionment. the state of beingallocated. the share or portionallocated. Accounting.a system of dividing expenses and incomes among the various branches, departments, etc., of a business....
In depreciation it is the asset’s cost that is assigned to each of the years that the asset is in use. In cost accounting it is the assigning of common production costs to various production departments, product lines, individual products, activities. Related Q&A What is cost allocation? Is...
The idea of identifying the cost structure is to allocate costs between fixed and variable costs effectively. These costs are then associated with individual products and product lines to ascertain their correct pricing. Also, cost allocation could happen to different projects, departments, and service...
Accumulation of cost through theProcess CostingSystem occurs when the production of a huge amount of identical goods occurs. In this system, the accumulation of costs for a large batch of products takes place. And afterward, further allocation of all such accumulated costs takes place for an indi...
if you were to measure the total direct labor cost for the week, the denominator would be the total weekly cost of direct labor for production that week. Finally, you would divide the indirect costs by the allocation measure to achieve how much in overhead costs for every dollar spent on ...
The meaning of ALLOWANCE is a sum granted as a reimbursement or bounty or for expenses; especially : a sum regularly provided for personal or household expenses. How to use allowance in a sentence.
The decision also depends on the best allocation of resources across a set of tasks as well. Employees who are qualified to undertake a project if it is insourced might be more profitably deployed on other projects. Advantages of Insourcing ...
The financial management is generally concerned with procurement, allocation and control of financial resources of a concern. The objectives can be- To ensure regular and adequate supply of funds to the concern. To ensure adequate returns to the shareholders which will depend upon the earning capacit...