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Reasons for Cost Allocation
1. To provide comparison along with externally provided services: It helps in assessing where to continue the contact or service outsiders.
2. To facilitate ideas on the efficiency of service departments: It assists to determine where a service department is operating efficiently and its size is optimal.
3. To discourage unnecessary service via some managers like they identify they'll be charged.
4. To facilitate opportunity for cost price-quality tradeoffs: Cost allocation assists to remove friction among departments. Since a user department such demands higher quality recognizes that it will contain to bear higher costs.
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If a company trades in a building towards a new building and does not recognize a gain or loss (because of code section 1031), will this transaction affect the cash flows statement
sir i want to know the whole procress of costing
“The statement of cash flows is the easiest of the basic financial statements to prepare because you know the answer before you start. You compare the beginning and ending balances
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