Allocation of Costs Reflection
Cost Accounting I
DQ1 Allocation of Costs Reflection [WLOs: 1, 2, 3, 4] [CLOs: 3, 6]
Prior to beginning work on this discussion forum, read Chapters 4, 5, and 17 in your textbook.
Write: Make sure your response addressing the following question is more than 200 words and include an in-text citation from the reading material where appropriate.
Some managers believe that allocated costs are arbitrary and therefore not relevant, and that only costs that are direct costs should be reported. Explain why you believe all costs are relevant and why allocation of costs is necessary for accurate financial reporting.
DQ2 Cost Drivers Scenario [WLOs: 1, 2, 3, 4] [CLOs: 3, 6]
Prior to beginning work on this discussion forum, read Chapters 4, 5, and 17 in your textbook.
Write: Make sure your response addressing the following question is more than 200 words and include an in-text citation from the reading material where appropriate.
Determine the difference between a cost object and a cost driver by giving an example of each within the context of a manufacturing plant of your own choosing. Be specific. Explain why this differentiation is important in activity-based costing (ABC).
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