From the course: Financial Analysis: Analyzing the Bottom Line with Excel

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Allocating costs by category

Allocating costs by category - Microsoft Excel Tutorial

From the course: Financial Analysis: Analyzing the Bottom Line with Excel

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Allocating costs by category

Now that we have our source of data for our cost of production, we need to do the final step in order to have standard costs for each of our products. If you remember, standard costs, as defined in this course, is the average cost of production of a single product over a certain period of time. For example, it would be the average cost of production of the ultra thin pen over 2013. Let's look at a complete example and use the methodology and Excel table I use to do such an allocation.

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