Term
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Definition
| cost that the contract parties agree to include in the costs to be reimbursed |
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Term
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Definition
| also called complete reciprocated costs |
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Term
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Definition
| a package of two or more products (or services) that is sold for a single price, but whose individual components may be sold as separate items at their own “stand-alone” prices |
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Term
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Definition
| cost of operating a facility, activity or like cost object that is shared by two or more users |
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Term
| Complete reciprocated costs |
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Definition
| the support department’s own costs plus any interdepartmental cost allocations. Also called the artificial costs of the support department. |
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Term
| Cost Accounting Standards Board (CASB) |
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Definition
| government agency that has the exclusive authority to make, put into effect, amend and rescind cost accounting standards and interpretations thereof designed to achieve uniformity and consistency in regard to measurement, assignment and allocation of costs to government contracts within the united states |
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Term
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Definition
| cost allocation method that allocates each support department’s costs to operating departments only |
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Term
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Definition
| allocation method that classifies costs in each cost pool into two pools (a variable-cost pool and a fixed-cost pool) with each pool using a different cost-allocation base. |
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Term
| Incremental cost-allocation method |
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Definition
| method that ranks the individual users of a cost object in the order of users most responsible for the common cost and then uses this ranking to allocate cost among those users |
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Term
| Incremental revenue-allocation method |
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Definition
| method that ranks individual products in a bundle according to criteria determined by management (for example, sales) and then uses this ranking to allocate bundled revenues to the individual products |
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Term
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Definition
| also called reciprocal method |
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Term
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Definition
| department that directly adds value to a product or service. Also called a production department in manufacturing companies |
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Term
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Definition
| also called operating department |
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Term
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Definition
| cost allocation method that fully recognizes the mutual services provided among all support departments. Also called matrix method |
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Term
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Definition
| the allocation of revenues that are related to a particular revenue object but cannot be traced to it in an economically feasible (cost-effective) way |
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Term
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Definition
| anything for which a separate measurement of revenue is desired |
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Term
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Definition
| also called support department |
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Term
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Definition
| allocation method that allocates costs in each cost pool to cost objects using the same rate per unit of a single allocation base |
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Term
| Sequential allocation method |
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Definition
| also called step-down method |
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Term
| Stand-alone cost-allocation method |
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Definition
| method that uses information pertaining to each user of a cost object as a separate entity to determine the cost-allocation weights |
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Term
| Stand-alone revenue-allocation method |
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Definition
| ethod that uses product-specific information on the products in the bundle as weights for allocating the bundled revenues to the individual products |
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Term
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Definition
| cost allocation method that partially recognizes the mutual services provided among all support departments. Also called sequential allocation method |
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Term
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Definition
| department that provides the services that assist other internal departments (operating departments and other support departments) in the company. Also called a service department |
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