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HCA 312 Week 2 Assignment 1, The Different Methods of Cost Allocation

HCA 312 Week 2 Assignment

Cost allocation is the process of assigning the cost of a product or service to any department that uses any part of the consumable product.  The cost of various products or services would be charged to each department that uses these.  With this method they can determine what services are provided and how much each of those services costs that one department. When allocating the costs to other departments the costs incurred can be allocated to multiple departments.  By allocating costs using the direct method the organization will be able to………..