Abdill Career College Cost Allocation Discussion


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1) Your written report must be word processed (using MS Word and Excel) and must
not be more than 7 typed pages of text (2.54 cm margins, 12 point times new roman
font, and 1.5 line spacing). The page limit does not include a title page, executive
summary (not longer than 300 words), table of contents, or any appendices deemed
essential, and references (using APA formatting). Appendices must be specifically
referenced in the main body of your document.
Read all three (3) articles posted on our Class BlackBoard web page in the “Final Exam”
folder, prior to writing your response. The three articles are as follows:
1) The Costs and Benefits of Cost Allocation (Zimmerman, 1979) – read the entire
2) Is Cost Allocation Just? (Choudhury, 1990) – read the entire article
3) Overhead Cost Allocation and Earnings Manipulation between Quarters (Wahabe,
Teitel, & Smith, Spring, 2018) – read the entire article – note: do not get bogged
down with the statistics
The three papers span the period from 1979 to 2018. These papers were intentionally
selected in order to highlight, not only the significance, but also the longevity (1979 –
current), of cost and revenue allocation as an issue confronting many organizations past
and present.
You are required to critically and objectively analyze, discuss, compare, and contrast
each article while MOST IMPORTANTLY linking/relating their key concepts to the
various Managerial Accounting concepts/topics covered in class. Your analysis of all
three papers should identify and link/relate their key concepts/topics to no less that 10 of
the most significant concepts/topics that we covered and/or discussed in class. For example,
one could describe/link how “cost allocations are linked to managerial behavior” as
discussed in the Zimmerman study/article (1979), by relating it to our in-class
discussion/presentation (and presentation that was posted on BB) of the University of
Saskatchewan’s Cost Allocation & Revenue Allocation system (i.e., the Transparent
Activity Based Budgeting System (TABBS)). Please note that quantitative explanations
can also be used to support your explanations, which if lengthy should be included in your
appendices and referenced in the main body of your report. Hint, it is essential that you
make sure to demonstrate your understanding, comprehension and implications of cost
and revenue allocation systems. Please make sure not to simply regurgitate what the
articles, our textbook, or in-class notes say, rather your job is to critically and objectively
discuss the 10 different concepts. Lastly, where possible you should link your discussion
to real world practical examples (as was discussed/explained regularly throughout the
Lastly, please ensure that your report is grammatically (e.g., spelling, punctuation) and
professionally written and formatted.

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