Ch 4: Manufacturing Overhead Cost Allocation

About This Chapter

This chapter explains manufacturing overhead cost allocation to you. Read through our short text lessons and take the quizzes to evaluate your comprehension.

Manufacturing Overhead Cost Allocation - Chapter Summary and Learning Objectives

Cost allocation can be beneficial for companies. Managers must understand these benefits as well as the different methods used in cost allocation. This chapter compares the methods of and reasons for cost allocation. With brief video lessons, instructors focus on examples of different methods and analyze important terms. Quizzes can be found in each lesson and are there to help you measure your understanding of the material. The lessons in this chapter cover:

  • What cost allocation is and the terms associated with it
  • The purposes and reasons for cost allocating
  • How to apply different methods for allocating costs, including the direct method and the step-down method

Lesson Objective
Cost Allocation: Definition, Terms & Examples Assess examples of how costs are allocated and how this benefits companies.
Cost Object: Definition & Examples Consider cost objective and learn about examples.
The Three Purposes of Cost Allocation Focus on the reasons for allocating costs and give examples.
Cost Allocation of Service Departments Analyze the three main reasons for allocating costs.
Direct Method of Cost Allocation: Process, Pros & Cons Break down the advantages and disadvantages of this method.
Step-Down Method of Cost Allocation Explain the step-down method of allocating cost and outline its limitations.
Reciprocal Distribution Method of Cost Allocation Evaluate the processes for allocating cost with the reciprocal distribution method.

Chapter Practice Exam
Test your knowledge of this chapter with a 30 question practice chapter exam.
Not Taken
Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
Not Taken

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