An unallocated cost of one company may be an allocated cost in another company.

Question

Quizplus · Accepted Answer

This statement is true because the way costs are allocated can vary among companies. A cost that is not directly tied to a specific product or service in one company may be allocated to a specific product or service in another company. For example, rent may be considered an unallocated cost in one company but can be allocated to specific departments or products in another company.

An Unallocated Cost of One Company May Be an Allocated