Question

Current GAAP requires the allocation of total share-based compensation cost to expense on a straight-line basis over the vesting period.
(A) True
(B) False

Answer 1

Answer:

The correct answer is True.

Explanation:

Cost allocations move costs and revenues between cost types, cost centers and cost objects. You can define as many assignments as you need. Each assignment consists of:

- An origin assignment.

- One or more assignment destinations.

The allocation source establishes what costs should be allocated, and the allocation destinations determine where the costs should be allocated. For example, an origin of allocation may be the costs of the type of cost Electricity and Heating. Assign all electricity and heating costs to three cost centers: Workshop, Production and Sales. These cost centers are the allocation destinations.  

For each assignment source, you can define an assignment level, a validity period and a variant as a group identifier. You can use a batch job to define filters to select assignment definitions and then run cost assignments automatically.