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Business Finance

Description

1.Explain why some production costs must be assigned to products through an allocation process

2.2 pages

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Explanation & Answer

Attached.

Running head: BUSINESS QUESTION

1

Business Question
Name
Course Number
Date

BUSINESS QUESTION

2

Business Question
As the small business owner, allocating the costs through an accounting system is an
essential task. The procedure requires an individual to assign costs so that all mechanism
incorporated in that costs are alienated consequently. It is essential to assign some production
costs to products through an allocation process because sometimes it can be challenging to trace
the costs to the actual product. If particular are set aside for a product, then they have to be
allocated to that product. If there are misallocations of these costs, that is they are not earmarked
properly, and then they would be included in overhead costs. This will hav...


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