Cost Allocation; General Concepts An organization’s service and administrative costs can besubstantial, and some or all of these costs usually are allocated to cost objects. Thus, the allocationof service and administrative costs can have a significant impact on product cost and pricing, assetvaluation, and segment profitability.Required When service costs are allocated, they are grouped into cost pools and then allocated to departments according to some allocation base.1. Compare and contrast the benefit-received basis and the cause-and-effect basis for cost allocation.2. Explain what the ability-to-bear criterion means in selecting an allocation base.
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
Cost Allocation; General Concepts An organization’s service and administrative costs can be
substantial, and some or all of these costs usually are allocated to cost objects. Thus, the allocation
of service and administrative costs can have a significant impact on product cost and pricing, asset
valuation, and segment profitability.
Required When service costs are allocated, they are grouped into cost pools and then allocated to departments according to some allocation base.
1. Compare and contrast the benefit-received basis and the cause-and-effect basis for cost allocation.
2. Explain what the ability-to-bear criterion means in selecting an allocation base.
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