In management accounting, an allocation base is a criterion used to allocate costs to cost objects. It plays a crucial role in both traditional and activity-based costing systems, ensuring accurate cost distribution.
Comprehensive guide to understanding cost allocation, including historical context, types of systems, key events, detailed explanations, formulas, charts, applicability, examples, related terms, comparisons, interesting facts, quotes, and more.
Comprehensive Definition and Analysis of Cost Drivers, Including Types, Examples, and Applications.
A Transaction Driver is a cost driver based on the number of times an activity is performed. It plays a crucial role in Activity-Based Costing (ABC) by attributing costs to activities.
