atgstudy20June 27, 20220 0
What is an Applied Cost?
What is an Applied Cost? An applied cost is a cost that has been applied to a cost object, such as a product, department, or activity. A predetermined allocation rate is typically used to assign costs to cost objects. The allocation rate is based on the planned amount of the cost pool and a planned activity level. If the actual costs and production volumes turn out to be different, an adjustment to the allocation rate may be made partway through…Read More »