Creative Consumers Consultants

Paper Summary:

This paper deals with the evaluation of two different types of allocations regarding the balance sheet of branch companies. Each method includes costs but some are traceable and some are not. Each method is briefly analyzed and evaluated to determine which one is more beneficial.

From the Paper:

"Obviously costs are allocated to allow departments, accountants and owners/investors etc... to easily see where spending is occurring within a company (Horngren & Sundem, 1990, p. 65). In addition to this, allocations allow a trend of activity to be traceable, which will aid in forecast development for the future. These forecasts can also address the reduction of costs to be determined as a possible new objective for the next business year. We often forget that in order to make money that money must be spent. Costs are a "necessary evil" for all businesses. These costs/expenses can range in many different areas and often include travel expenses and fees, which are incurred to service clients in addition to general offices expenses. In the case for Creative Consumers Consultants, all costs assessed are listed in traceable and non-traceable account listings. "

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