Many organizations have departments that provide services to other departments. For example, a janitorial department delivers services to the rest of a company, including the production departments ...

Prior work has examined models in which the reciprocal cost allocation method yields allocation rates that are equal to the marginal costs of operating service departments. We extend this work by ...

Companies use cost allocation to accurately determine the costs associated with production. Cost allocation tells the company what it spends on overhead during production process so accounting ...

The IRS issued proposed regulations that affect taxpayers who produce or resell property and allocate costs under the simplified production method or simplified resale method (REG-126770-06). The ...