Abstract
In the past there have been many criticisms of the use of allocations in the practice of management accounting. As discussed in Chapter 2, the conventional wisdom of management accounting is that all allocations are arbitrary. But, as was pointed out in Chapter 3, allocations are widespread in practice. To use the words of Dopuch (1981, p. 6) ‘too much cost allocation has been carried out in practice to lead us to believe it is all bad’. Consequently, cost allocations have become a focal point for discussions of the gap between theory and practice.
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© 1991 Robert W. Scapens
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Scapens, R.W. (1991). Cost Allocation Models. In: Management Accounting. Palgrave, London. https://doi.org/10.1007/978-1-349-21348-1_11
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DOI: https://doi.org/10.1007/978-1-349-21348-1_11
Publisher Name: Palgrave, London
Print ISBN: 978-0-333-55353-4
Online ISBN: 978-1-349-21348-1
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