Cost Management: A Strategic Emphasis 5th Edition by David Stout, Edward Blocher, Gary Cokins

Exercise 7

Give two or three examples of the use of cost allocation in service industries and not-for-profit organizations.

Step 1 of 3

Cost Allocation:

Cost allocation means to allocate overhead expenses on the basis of cost objects. Cost allocation can be done for product wise , department wise etc.

Cost allocation is mainly used in manufacturing concern but it is equally importance in service as well as not for profit Sector.