What kind of risks can exist in a business?
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Cost allocation is a technique of allocating the organization's costs among the various cost centers of the organization. Thus, the office costs allocated to the Bottling department are equal to $128,000.
<h3>What are allocation costs?</h3>Cost allocation is a technique of supplying relief to shared carrier organization's cost facilities that offer a product or provider. In turn, the related cost is assigned to internal clients' price centers that devour the goods and services.
As per the given information,
Total office costs: $320,000
We have given total number of employees for mixing = 600
And total number of employees for bottling = 400
office costs = $320,000
So total number of employees is equal to 600 plus 400 is 1000 employees.
Thus, the office costs allocated to the Bottling department is equal to $128,000.
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Explanation:
Movement from D to C.
Lorenz curve is a curve used to depicts how income is been distributed within an economy, it also shows the progressive share of income within various segment of the population. Lorenz curve was originated by an American Economist called Max O Lorenz in 1905.
