Chapter 24, Problem 9DQ

To determine

Introduction:

Cost allocation: It is the process of identifying, aggregating and assigning common cost to several cost objects. Cost allocation cannot be precisely done as there is no scientific method to allocate common cost and it is done in an arbitrary but not in a haphazard manner. The objective of cost allocation is finding a base that can fit into various cost centers.

To find: Reasonable basis for allocating costs for the given expenses