Cost Allocations (TD)

Here are a few items for discussion for this assignment:

1. Give some synonymous terms for traceable and non-traceable costs.

2. Is the focus on variable or fixed costs in this module?

3. Give a name for an expanded contribution margin income statement.

4. Are we using actual or estimated costs for planning purposes?

5. Why do companies allocate costs?

6. If non-traceable costs are not allocated to the various operating units within an organization, who ends up paying these costs?