ACCY304-18%20Organizational%20ArchitectureIIIHO

ACCY304-18%20Organizational%20ArchitectureIIIHO -...

Info iconThis preview shows pages 1–7. Sign up to view the full content.

View Full Document Right Arrow Icon
Organizational Architecture III Session 18 April 6, 2011 1 Department of Accountancy University of Illinois at Urbana-Champaign
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Exam Friday 5/6/2011 8:00 AM - 11:00 AM 1LIB-66 Room 66 Main Library 1408 W. Gregory Dr. Urbana, IL 61801 2
Background image of page 2
3 Cost allocation Department of Accountancy University of Illinois at Urbana-Champaign Cost allocation : the assignment of indirect (common/joint  costs) to different departments, processes, or products Cost object : the product, process, department, or  program to which a set of costs are allocated Indirect costs : costs that cannot be directly traced to units  produced or cost objects precisely because such costs are  incurred in providing benefits to several product lines or  users Allocation base : a measure of activity associated with the  pool of common costs being distributed to the cost objects
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
4 Cost allocation Department of Accountancy University of Illinois at Urbana-Champaign Cost allocation requires the following steps: Step 1: Define the cost objects Step 2: Accumulate the common costs to       be assigned to the cost objects Step 3: Choose an allocation base
Background image of page 4
5 Example of cost allocation Department of Accountancy University of Illinois at Urbana-Champaign Allocation of costs for e-mail service Step 1 Cost object = departments Step 2 Total indirect costs = 575.000  (computer lease 273.000 + labor 195.000 + software  78.000 + other costs 29.000)
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
6 Example of cost allocation Department of Accountancy
Background image of page 6
Image of page 7
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 08/18/2011 for the course ACCY 304 taught by Professor Bol during the Spring '11 term at University of Illinois at Urbana–Champaign.

Page1 / 18

ACCY304-18%20Organizational%20ArchitectureIIIHO -...

This preview shows document pages 1 - 7. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online