Cost allocation is an important tool for any business to understand expenses. It can help managers understand the sustainability of their services and identify costs before they get out of control.

From clean toilets to working computers, your company incurs many costs that it cannot assign to one particular "cost object" -- a product, project, department or service. You must nonetheless cover ...

Federal regulations require that similar costs be treated consistently as either direct costs or indirect costs, in like circumstances. This regulation imposes a requirement on the University to ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Vikki Velasquez is a researcher and writer ...

What Is a Profit Center? A profit center is a part of a company that generates revenue and contributes to its profit. It operates like a standalone business, with managers who make pricing and expense ...

On April 21, 2022, the Federal Energy Regulatory Commission (“FERC” or “Commission”) issued a much-anticipated Notice of Proposed Rulemaking (“NOPR”) proposing changes to its transmission planning and ...