Cost allocation is arbitrary, so there is nothing gained by it. We should report only the costs that we know are direct.?

29 Nov Cost allocation is arbitrary, so there is nothing gained by it. We should report only the costs that we know are direct.?

Posted at 02:14h in Business & Finance / Accounting by

Week 2 Discussion Question 2

Fundamentals of Product and Service Costing

Complete Question 6-8 and 6-14. Respond to at least two of your classmates' postings.

Question 6-8

“Cost allocation is arbitrary, so there is nothing gained by it. We should report only the costs that we know are direct.” Do you agree? Why?

Question 6-14

What criteria are important in determining the choice of an allocation base?