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City of South El Monte RFP Full Cost Allocation Study and User Fee Study Page 1 of 15 REQUEST FOR PROPOSALS FOR FULL COST ALLOCATION STUDY AND USER FEE STUDY RESPONSE DUE: October 27, 2016, September

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How to fill out full cost allocation study

01

Step 1: Determine the scope and objectives of the full cost allocation study.

02

Step 2: Identify all the direct and indirect costs associated with the project or activity.

03

Step 3: Allocate the direct costs to specific cost objects using a suitable allocation method.

04

Step 4: Determine the appropriate allocation bases for allocating indirect costs.

05

Step 5: Calculate the overhead rate by dividing the total indirect costs by the total allocation base.

06

Step 6: Allocate the indirect costs to the cost objects using the overhead rate.

07

Step 7: Verify the accuracy of the cost allocation by reconciling the total allocated costs with the total actual costs.

08

Step 8: Document the full cost allocation study methodology and results for future reference.

Who needs full cost allocation study?

01

Government agencies and departments that receive funding and need to accurately allocate costs to different programs or projects.

02

Non-profit organizations that need to demonstrate how their funds are being utilized and allocate costs to different programs or services.

03

Large corporations or businesses that operate multiple divisions or departments and need to allocate costs for performance evaluation or financial reporting purposes.

04

Manufacturing companies that need to allocate indirect manufacturing costs to their products for pricing or profitability analysis.

05

Service organizations that offer various services and need to allocate costs to different service lines or clients.

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What is full cost allocation study?

A full cost allocation study is a detailed analysis used to allocate all costs incurred by a company across its various products or services.

Who is required to file full cost allocation study?

Companies in certain industries or sectors may be required to file a full cost allocation study as per regulatory or reporting requirements.

How to fill out full cost allocation study?

To fill out a full cost allocation study, companies need to analyze and allocate all costs incurred using a structured methodology.

What is the purpose of full cost allocation study?

The purpose of a full cost allocation study is to accurately allocate costs to different cost centers or products/services to understand the true cost of production or service delivery.

What information must be reported on full cost allocation study?

Information such as detailed cost breakdowns, allocation methodologies, and final cost allocations must be reported on a full cost allocation study.

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