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What is the allocation rate formula?

To determine the allocation rate of capital invested in a product, an investor can use the following equation: (Total Investment - Fees Paid) / Total Investment Calculating the allocation rate percentage helps an investor to understand better how their money is being utilized.

What is allocation methodology?

Definition of Allocation Method. Allocation Method means the method by which EHP and EPC shall identify the employees and former employees assigned to the EHP Group and the employees and former employees assigned to the EPC Group as set forth in Schedule A.

What are the different types of allocation methods?

A few common cost allocation systems include absorption costing, variable costing, and activity-based cost allocation. Companies often select the best allocation system based on their manufacturing environments, such as job order or process production. Each costing method has its benefits and drawbacks from an accounting standpoint.

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