Problem:
Cost Allocations: Here are a few items for discussion:
Give some synonymous terms for traceable and non-traceable costs.
Is the focus on variable or fixed costs in this module?
Give a name for an expanded contribution margin income statement.
Discussion questions:
Are we using actual or estimated costs for planning purposes?
Why do companies allocate costs?
If non-traceable costs are not allocated to the various operating units within an organization, who ends up paying these costs?