The Allocation Problem “VERIZON” Essay

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Case assignment expectations:
In this module, we are going to review your organization and its treatment of allocated costs.


Retrieve any report in the organization that allocates common costs to a division, product, or service. Recast that report with unallocated costs and comment on the usefulness of that revised report. HINT: You need to prepare a segmented income statement and discuss the information presented.

LENGTH: 2-3 pages typed and double-spaced

The following will be assessed in particular:

If you cannot identify specific actual amounts, make a reasonable estimate and apply the tool as if the data were factual. Estimates should be reasonable, justified and documented.

Your report should include

The name and nature of the organization
The activity and time period you used
The inputs you used
Your results
Any implications from your results

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