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Advantages associated with a transfer include
Overhead Cost
Expenses related to the ongoing operation of a business that are not directly tied to producing goods or services, such as rent, utilities, and administrative salaries.
Activity Rates
Costs assigned to cost objects based on their use of activities, commonly used in activity-based costing.
Cost Pools
Aggregations of individual costs, often by department or service center, from which cost allocations are made.
Activity-Based Costing
An accounting method that identifies the activities in an organization and assigns the cost of each activity to all products and services according to the actual consumption by each.
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