Home / Questions / In terms of going through the motions of the cost allocation process, it makes most sense
In terms of going through the motions of the cost allocation process, it makes most sense to walk through them in the following order:
Select one:
a. Establish Cost Pool, Choose Cost Driver, Determine Cost Allocation Rate then Make the Allocation to the Department/Unit.
b. Choose Cost Driver, Establish Cost Pool, Determine Cost Allocation Rate then Make the Allocation to the Department/Unit.
c. Determine Cost Allocation Rate, Establish Cost Pool, Choose Cost Driver, then Make the Allocation to the Department/Unit.
d. Establish Cost Pool, Determine Cost Allocation Rate, Choose Cost Driver then Make the Allocation to the Department/Unit.
e. Make the Allocation to the Department/Unit, Establish Cost Pool, Determine Cost Allocation Rate, then Choose Cost Driver.
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