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Allocating Joint Costs in Applied Forestry

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Abstract:

Two cost allocation techniques, "separable costs-remaining benefits" and the "simple Shapley value," are discussed and evaluated. The evaluation is performed relative to basic principles of cost allocation: that separable costs should be covered and that allocations should not exceed respective benefits. Two examples demonstrate that neither allocation technique is always consistent with the principles. The paper also discusses conditions under which each technique conforms to the principles, in part and in full. West. J. Appl. For. 2(2):45-48, April 1987.

Document Type: Journal Article

Affiliations: Rocky Mountain Forest and Range Experiment Station, USDA Forest Service, Fort Collins, CO 80523

Publication date: 1987-04-01

More about this publication?
  • Each regional journal of applied forestry focuses on research, practice, and techniques targeted to foresters and allied professionals in specific regions of the United States and Canada. The Western Journal of Applied Forestry covers the western United States, including Alaska, and western Canada; WJAF will also consider manuscripts reporting research in northern Mexico that has potential application in the southwestern United States.
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