2 Week 2 Lecture Chp 15.pptx - ACCT3203 Contemporary Managerial Accounting Week 2 Cost Allocation(I Chapter 15 Semester TWO 2019 Prepared By Professor

2 Week 2 Lecture Chp 15.pptx - ACCT3203 Contemporary...

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ACCT3203 Contemporary ManagerialAccountingWeek 2 Cost Allocation (I) Chapter 15Semester TWO 2019Prepared By:Professor Vincent Chong & Dr Thanes SubraamanniamUWA Business SchoolThe University of Western Australia
Cost Allocation (I)Learning Objectives:Distinguish between the single-rate method from the dual-rate methodUnderstand how divisional incentives are affected by the choice between allocation based on budgeted and actual rates, and budgeted and actual usageAllocate multiple support-department costs using direct method, step-down method, and reciprocal methods
Single rate vs Dual rateCost Allocation MethodsSingle-rate cost allocation methodPools all costs regardlessof cost behaviour patterns (i.e., fixed or variable) in one cost poolAllocates to cost object using the same rate per unit of single allocation baseCost less to implement实施成本更低
Single rate vs Dual rateCost Allocation Methods - cont.

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