Question

Q4. Cost allocation is a method through which a business allocates or distributes an indirect cost across various cost objects..

Answer 1

Answer:

Cost allocation is the process of identifying, accumulating, and assigning costs to costs objects such as departments, products, programs, or a branch of a company. ... If costs are allocated to the wrong cost objects, the company may be assigning resources to cost objects that do not yield as much profits as expected.