Treatment of Costs Allocation for CISCO
CISCO is an organization that designs, manufactures, and sells Internet Protocols (IP)-based networking. To satisfy the customer needs, CISCO also designs custom products tailored to the customer's specifications to assist them in reducing costs, improve productivity and gaining competitive advantages. Since CISCO designs and manufactures wide range of products, the company is required to allocate costs to its products and services to improve decision and resources allocation.
The objective of this report is to retrieve how CISCO allocates common costs for its product, and services.
Method CISCO allocated costs for Products and Services
Cost allocation is defined as the costs allocated to goods and services to measure the inventory costs. Since CISCO provides wide range of products and services, the cost allocation is very critical to identify the costs associated to each product in order to calculate the associated revenue. At the end of the fiscal year 2010, the total costs...
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