18
Jan
Stand Alone Cost Allocation Method. This video shows to use the Stand-alone Cost Allocation Method to allocate a common cost. Allocating a Discount A discount should be allocated entirely to one or more but not all performance obligations in the contract if all of the following criteria are met. Stand-alone method Incremental method. What is the Stand-Alone Cost Method.
The stand-alone cost-allocation method uses information pertaining to each user of a cost object as a separate entity to determine the cost-allocation weights. 34 Using the stand-alone method with manufacturing cost per unit as the weight for revenue allocation what amount will be allocated to the refrigerator. The best evidence of stand-alone selling price is the observable price at which the good or service is sold separately by the entity in similar circumstances to similar customers in a single transaction. Select a company that you work for now or have worked for in the past or a company in your community of. This video discusses 3 different ways to allocate a common cost to multiple users. Dan incentive is created to be the first-ranked user.
1 Stand-alone Cost Allocation Method2 Incremental Cost Allocation Met.
Stand-alone method Incremental method. Ethe parties are interested in being viewed as primary users. 1 Stand-alone Cost Allocation Method2 Incremental Cost Allocation Met. A 50000 B 61250 C 62000 D 77500 E 68750 Answer. To allocate the transaction price across multiple performance obligations a stand-alone selling price must be either identified or estimated via an appropriate method. For example the field service department and the returns department separately want to ship repaired appliances.