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in this presentation we will take a look at some examples related to indirect expense allocation the scenario is that we have these indirect expenses we want to apply them out to different departments but they are involved in different departments we need some method to apply these expenses out to those departments to do that we will choose an activity base we will then use that activity-based you come up with percentages those percentages then being used to allocate these expenses to the departments why because we cant allocate these expenses evenly because of the different amount of use of these related expenses per department to do this were going to have different types of activity bases that we think are going to be most applicable to that allocate in that particular type of expense the method we will use will look much the same however so note that we want to get used to the method once we know the method we can apply it to basically any type of activity base that we have and
