After studying the chapter, you should be able to . . .

1. Identify the strategic role and objectives of cost allocation
2. Explain the ethical issues of cost allocation
3. Use the three steps of departmental cost allocation
4. Explain the implementation issues of the different departmental cost allocation methods
5. Explain the use of cost allocation in service firms
6. Use the three joint product costing methods
7. Use the four by-product costing methods