How to allocate the shared expenses to the right business units with the cost allocation methods and the identified activities’ data

Previously, the organization did the business by aiming at the growing number of sales from each business unit because with only the achievement of sale, the company could make the profit as required.

Currently, the philosophy of business proceeding has been changed from focusing only a number of sales to cost supporting sales. As we know that the cost drives the competitive pricing and this enables any business to sustain the ability of competing in the market.