Cost allocation serves several purposes. Also referred to as cost apportionment, this practice of identifying the source of an expense and assigning the cost accordingly is an important factor in ...

Federal regulations require that similar costs be treated consistently as either direct costs or indirect costs, in like circumstances. This regulation imposes a requirement on the University to ...

Not-for-profit entities (NFPs) are under constant pressure to devote an increasing portion of their expenditures to accomplishing their mission programs. While this goal sounds appealing, the NFP must ...

In financial accounting and taxes, attributing expenses to the correct category isn’t just a tip or guideline; it’s a requirement when filing IRS forms, requesting grant funds, or reporting to ...

Manufacturing overhead – also called indirect costs – are any costs that a factory incurs other than direct materials and direct labor needed to manufacture goods, notes "Accounting 2," a reference ...