Activity-based costing is an improved method for allocating overhead costs. Instead of using one factor for cost allocation, this new method focuses on different aspects of the production process ...

Cost accounting uses an allocation base to determine overhead costs to the cost object. Types of Overhead Expenses As noted above, the term overhead expenses refers to costs that aren't related to ...

When overhead costs are more closely related to materials used than labor costs expended, small-business owners may wish to use direct materials dollars as the overhead allocation base.

However, CAS 418 provides specific criteria for selecting the allocation base. ... In that circumstance, the contractor must use a direct labor hour base or a direct labor cost base, ...

Cost allocation decisions are subject to verification through internal reviews and external (State and Federal) audits. The guidelines discussed in this document provide a relative measure of the ...

A cost driver, also known as an activity driver, is used to refer to an allocation base. Examples of cost drivers include machine setups, maintenance requests, consumed power, purchase orders ...

Many of these projects bypass FERC regulated regional cost allocation entirely. Other options include using merchant revenues (SunZia), state agencies (e.g., NYSERDA), or the traditional rate-base ...