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What is cost allocation?
Cost allocation is actually assigning different indirect costs to cost objects. Mainly these costs are not traced. These indirect costs mainly composed of a large percentage of the total cost grouped overall.
There are different purposes of cost allocation:
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Decisions on cost allocations have different criteria:
Moving to the other topic is profitability analysis.
What is profitability analysis?
As the name suggests, it helps in the analysis of the profit made by a business entity. There are various divisions and other factors included in this procedure.
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Some factors that help in determining this analysis are:
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What is sales variance?
Sales variance is a big topic and is often grouped into different stages for a better understanding
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