account for I don't understand the following in bold. Could you please explain them? Determining Attributable Costs
You then analyze each of your administrative expenses and allocate to each product or service the exact amount that it costs to administer and account for that product or service. For example, if you have a service manager whom you pay $25,000 per year and you sell 1,000 of your product yearly, you must allocate per item $2.50 for his labor and 1/1,000th of his benefits package.
What's the meaning of "account for" in the context? And I don't understand the last part. Is it saying "you must allocate 1/1,000th of his benefits package?" If so, I don't know what it means.
Thank you. |