Fixed cost allocation

Fixed cost allocation

Introduction

In current competitive environment, every business is focused on identifying and allocating their cost more specifically to activity level on which business is operating (Yahya-Zadeh, 2011). This paper aims on identifying fixed associated with business involved in two products.

Discussion

In era of competition, businesses are more focused on identifying cost of the business that is associated with product accurately. However, effective method of identifying cost is not present but approximately near cost is identified with modern approach of costing such as activity based costing. Fixed cost is area of focus for business and its allocation is major ...