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Path: Consulting Services arrow Report & Digest arrow GCA Digest Articles arrow GCA Digest 2002 arrow What is a Cost Allocation Practice (Determining the selection of the allocation base)

What is a Cost Allocation Practice (Determining the selection of the allocation base)

The selection of the allocation base refers to the base measure (e.g. direct labor dollars, direct labor hours, direct material costs, total cost input or a resource consumption measure like computer usage or square footage). A change in the selection of the allocation base is a change in accounting practice.

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