Cost allocation is the process of dividing a total cost into its fixed and variable components.

Name: Cost allocation is the process of dividing a total cost into its fixed and variable components.
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Cost allocation is the process of allocating a total cost to specific products or departments based on their usage of the cost. It does not involve separating costs into fixed and variable components. That process is referred to as cost classification.

Cost Allocation Is the Process of Dividing a Total Cost