publishing as Prentice 12 - 1
Chapter 12
Cost Allocation
University
computer department
serves two major users:
Motivating
Predicting departments
economic and individuals
effects of the to use its
use of the capabilities
computer more fully
Resources consumed:
The budget formula for
1. Processing time
the forthcoming year
2. Operator time
is $100,000 monthly
3. Consulting time
fixed cost plus $200
4. Energy
variable cost per hour
5. Materials
of computer time used.
6. Building space
4. Allocate costs
Costs
Revenue
Total assets