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Allocating Indirect Costs

Allocating Indirect Costs

Allocating Indirect Costs

 Only Need 2-4 paragraphs, No cover page required. 

Select a company from one of the following industries of personal interest to you: banking, food service, manufacturing, or retail.

  • Identify in detail at least 2 primary activities that the Company must perform to provide its products or services. Be very specific in your description of each activity you decide to identify.
  • Identify in detail at least 2 indirect or overhead costs that the Company incurs in connection with that product or service internally.
  • Identify in detail an activity base for allocating overhead costs for each of the 2 primary activities you have described. Justify your chosen activity base by describing the base in a sufficient amount of detail, including any alternatives you can think of for allocating overhead, and why one activity base may be preferable or most representative of how the overhead should be allocated.

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