Assigning Costs to Cost Objects

The video tutorial explains the process of assigning costs to various activities or objects. It begins with identifying the object to which costs will be assigned, such as a company or product line. Costs are then combined into pools based on an allocation base, which could be activities, time periods, or other factors. The tutorial details how to calculate unit costs by dividing the total cost pool by the number of elements in the allocation base. Finally, it discusses identifying cost drivers, which are factors causing costs to incur, and using them to assign costs appropriately.

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