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Briefly explain how different types of cost allocation methods like Physical measure (Physical units) method, Sales value at split off method, Net Realizable Value (NRV)
Briefly explain how different types of cost allocation methods like Physical measure (Physical units) method, Sales value at split off method, Net Realizable Value (NRV) method and constant gross margin percentage NRV method of Management Accounting can be applied to education industry while allocating overhead cost among different cost objects. Give an example by taking the values arbitrarily (real data not required). 1st explain different cost objects or departments to allocate costs and then allocate using these 4 methods.
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