Accounting question. (1 Viewer)

[googy_1985]

Hi,
This is to all accounting students.

I am looking over my notes and doing some study, but confused.


When you want to allocate something, you use the formula:

Total Manufacturing Cost / units Allocation Base. Generally the allocation base is in units e.g number of kms travelled etc.

My question is, can it be a $ amount of the bottom e.g. price of petrol

 

[SoFTuaRiaL]

i dont do acct, but from my general knowledge:

if u have a $ amt on the bottom, the $s cancel each other off, so what ure gonna be left with is just a number ... (i mean 12 km / 13 km) is just 12/13 ) it doesnt provide u with any information at all whatsoever.
the price of petrol can have $/Ltrs ?