21st lecture - Allocating Common Costs

A common cost is the cost of operating a facility, activity, or cost object when that facility, activity, or cost object is shared by two or more users. Common costs arise because each user incurs a lower cost by sharing a facility or activity than operating the facility or performing the activity independently. The cost accounting challenge is how to allocate common costs to each user in a reasonable way. The Intro and ending lecture video by Hussam Al-attal | Jordan's 3D Mapping