Shapley Value Cost Allocation Method

This video shows how to allocate a common cost to multiple users with the Shapley Value Cost Allocation Method. The Shapley Value Method requires you to first calculate the cost allocated to each user with the Incremental Cost Allocation Method. First, calculate the cost allocated if the user were designated the primary user; next, calculate the cost allocated if the user were designated the first incremental user; then, calculate the cost allocated if the user were designated the second incremental user, etc. When you have finished, take the average of these costs for the user in question; this average value is the cost to be allocated to the user with the Shapley Value Method. Now, proceed to the next user and repeat the process (calculate the cost if this user were the primary user, then if the user were the first incremental user, etc. and then take the average of these costs).

Edspira is your source for business and financial education. To view the entire video library for free, visit http://www.Edspira.com

To like us on Facebook, visit https://www.facebook.com/Edspira

Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD. The goal of Michael's life is to increase access to education so all people can achieve their dreams. To learn more about Michael's story, visit http://www.MichaelMcLaughlin.com

To follow Michael on Facebook, visit
https://facebook.com/Prof.Michael.McLaughlin

To follow Michael on Twitter, visit
https://twitter.com/Prof_McLaughlin—
Edspira is the creation of Michael McLaughlin, an award-winning professor who went from teenage homelessness to a PhD. Edspira’s mission is to make a high-quality business education freely available to the world.
—
SUBSCRIBE FOR A FREE 53-PAGE GUIDE TO THE FINANCIAL STATEMENTS, PLUS:
• A 23-PAGE GUIDE TO MANAGERIAL ACCOUNTING
• A 44-PAGE GUIDE TO U.S. TAXATION
• A 75-PAGE GUIDE TO FINANCIAL STATEMENT ANALYSIS
• MANY MORE FREE PDF GUIDES AND SPREADSHEETS
* http://eepurl.com/dIaa5z
—
SUPPORT EDSPIRA ON PATREON
*https://www.patreon.com/prof_mclaughlin
—
GET CERTIFIED IN FINANCIAL STATEMENT ANALYSIS, IFRS 16, AND ASSET-LIABILITY MANAGEMENT
* https://edspira.thinkific.com
—
LISTEN TO THE SCHEME PODCAST
* Apple Podcasts: https://podcasts.apple.com/us/podcast/scheme/id1522352725
* Spotify: https://open.spotify.com/show/4WaNTqVFxISHlgcSWNT1kc
* Website: https://www.edspira.com/podcast-2/
—
GET TAX TIPS ON TIKTOK
* https://www.tiktok.com/@prof_mclaughlin
—
ACCESS INDEX OF VIDEOS
* https://www.edspira.com/index
—
CONNECT WITH EDSPIRA
* Facebook: https://www.facebook.com/Edspira
* Instagram: https://www.instagram.com/edspiradotcom
* LinkedIn: https://www.linkedin.com/company/edspira
—
CONNECT WITH MICHAEL
* Twitter: https://www.twitter.com/Prof_McLaughlin
* LinkedIn: https://www.linkedin.com/in/prof-michael-mclaughlin
—
ABOUT EDSPIRA AND ITS CREATOR
* https://www.edspira.com/about/
* https://michaelmclaughlin.com