A cost center is a function within an organization that does not directly add to profit but still costs an organization money to operate.

Sum-of-the-years' digits is an accelerated method for calculating an asset's depreciation. Discover more about it and how to calculate it here.

What Are Some Ways to Allocate Indirect Cost?. Cost allocation is significantly more straightforward when allocation involves direct rather than indirect costs. The object of cost allocation is to ...

On April 11, 2025, FERC issued Order No. 1920-B, which clarified and maintained key requirements from Order No. 1920-A regarding long-term transmission planning and cost allocation. FERC clarified ...

Another is the relative sales value or market value method of joint cost allocation, where you divide up joint costs based on the price of the products.

The United States District Court for the Central District of Illinois has held that an insurance policy requires allocation of defense costs based on the parties’ relative legal exposure if it ...

Citation Roth, A. E., and R. E. Verrecchia. "The Shapley Value as Applied to Cost Allocation: A Reinterpretation." Journal of Accounting Research 17, no. 1 (spring 1979): 295–303.