What methods of cost allocation were used

What methods of cost allocation were used - incurred, it is...

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What methods of cost allocation were used? Costs are allocated by their behavior to the activity level. i.e- costs are divided to fixed costs and direct costs. How were cost centers determined? Cost center is the responsibility center where cost incurred. in this scenario since laboratory work associated with an amniocentesis is performed at Academic, Academic is where the cost
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Unformatted text preview: incurred, it is the cost centre. How would fixed and variable costing differ in this situation? when using variable costing, Academic will only charge the direct cost of that specific lab work to Western. If fixed costing is used, Western will also have to absorb the general overheads allocation .of the Academic, therefore increasing the the transfer price....
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This note was uploaded on 01/05/2012 for the course 101 melissa jo taught by Professor Acc101 during the Spring '11 term at Aarhus Universitet.

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What methods of cost allocation were used - incurred, it is...

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