For example, in the diagram to the right, the bases are parallel. To find the area of a trapezoid, take the sum of its bases, multiply the sum by the height of the trapezoid, and then divide the result by 2, The formula for the area of a trapezoid is: or. where. is. , is. , is the height.and Â· means multiply.or example, in the diagram to the right, the bases are parallel. To find the area of a trapezoid, take the sum of its bases, multiply the sum by the height of the trapezoid, and then divide the result by 2, The formula for the area of a trapezoid is: or. where. is. , is. , is the height. and Â· means multiply.
Allocation. Definition: An allocation is the process of shifting overhead costs to cost objects, using a rational basis of allotment. Allocations are most commonly used to assign costs to produced goods, which then appear in the financial statements of a business in either the cost of goods sold or the inventory asset.If financial statements are not to be distributed outside of an entity, then there is less need to use allocations.llocations are most commonly used to assign costs to produced goods, which then appear in the financial statements of a business in either the cost of goods sold or the inventory asset. If financial statements are not to be distributed outside of an entity, then there is less need to use allocations.
Cost Allocation Methods The very term allocation implies that there is no overly precise method available for charging a cost to a cost object, so the allocating entity is using an approximate method for doing so. Thus, you may continue to refine the basis upon which you allocate costs, using such allocation bases as square footage, headcount, cost of assets employed, or (as in the example) electricity usage.