Define What Allochthonous Inputs Are and the Role They Play

question 46

Essay

Define what allochthonous inputs are and the role they play in a stream.

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Definitions:

Cost Allocation

The process of assigning indirect costs to different products, services, or business units within a company, typically using a logical allocation base.

Cost Distribution

The process of assigning or allocating an organization's costs to specific cost objects, such as products or departments.

Support Department Cost Allocation

The distribution of overhead costs from auxiliary departments (like maintenance or HR) to producing departments based on relevant allocation bases.

Support Department Cost Allocations

The process of distributing indirect costs from service departments to the departments that directly contribute to revenue generation.