Cost Application is a narrower term than cost allocation; it refers to the allocation of costs to products as distinguished from the allocation of costs to departments’ activities. Also called Cost Absorption.
Cost Application FAQs
A cost application is a document submitted to an organization indicating the estimated costs associated with a proposed project or program.
Anyone who has been approved by the organization to propose and oversee a project or program can submit a cost application.
A cost application typically includes details about the materials, labor, services, and other resources that are required for the project or program, as well as any potential risk factors or contingencies that may affect its successful completion.
The amount of time it takes to review and approve a cost application can vary, depending on the complexity of the project or program being proposed. Generally speaking, however, most applications are reviewed and approved within one to two weeks.
If your cost application is denied, you may be provided with an explanation as to why it was not approved. You may also be able to resubmit your application with revisions based on the feedback received from the organization. In some cases, you may need to submit a new cost application altogether.
True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.
True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.
To learn more about True, visit his personal website or view his author profiles on Amazon, Nasdaq and Forbes.
