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Explain the process of cost allocation. Cost allocation is required to assign, or allocate, costs recorded in various accounts (the cost pools) to the cost
Explain the process of cost allocation. Cost allocation is required to assign, or allocate, costs recorded in various accounts (the cost pools) to the cost objects (product, department, customer) of interest. An allocation rule specifies how this is done because there is generally no economically feasible way of associating the costs directly with the cost objects.
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