Allocation Problem Research Paper Example | Topics and Well Written Essays - 500 words

Allocation Problem - Research Paper ExampleI would, therefore, create a report on cost allocation based on certain estimations after analyzing Dells gross margin from income statements (Dell Financials, 2010). In Desktop PCs category, the main inputs include motherboard, processor, peripheral devices (keyboard and mouse), monitor, baffling disks, DVD ROM, RAM, power supply, power buttons, speakers, outer casing, internal and external wire connectors, modem, LAN and 3D-graphics cards etcetera The Desktop PCs category could be divided into parts such as purchases, component production, fitting and hardware installation, software installation, administration, inventory maintenance, after sales services (warranty expenses), wastage, breakage, pilferage etc. The costs will be allocated to each department after calculation of direct labor and direct material. Manufacturing Overheads will include indirect labor and material, while, the livelihood expenses will include rentals, insuranc e, depreciation and amortization, advertising and marketing, general administrative and others etc. followed by miscellaneous expenses (Ross 2009) (Grover, 2010).