Carolina, the accountant for Duke Manufacturing, tells her friend, Jacob, who works in customer service for Duke, that she is writing journal entries to transfer costs to products. Carolina is referring to the
Cost allocation process is the process of identifying and allocating cost to products. These products in which the cost are assigned are products in which they want to measure how much was spent to produce the product and the profit incurred form that product. Normally cost allocation process is based on approximations, it can only be done to be as close as possible to the incurred cost
