How I can allocate joint cost to multiple SKU’s?

One of my client has 40 SKU’s and he usually import his products from China or Pakistan and in One Container he usually receive more than one product / SKU, He asked me to allocate the total cost to all of the SKU’s received in one container. In this case what would be the best criteria / procedure to allocate joint cost to multiple SKU’s or products?
Is there any defined criteria available as per IRS?
Or we can just simply calculate the cost on the basis of most suitable measure i.e. weight, volume etc.

in progress 2 Answer


  1. 74 Answers

    Hi the IRS does not govern how to allocate cost between SKUs this is a decision that will have to be made internally. Usually when looking at a packing slip if there are multiple SKUs ordered the packing slip gives you the cost per item. If this is not the case then yes I suggest allocating based on quantity or weight whatever the suitable measure is as you mentioned.

  2. 6 Answers

    usually, we don’t get the cost on the packing slip, I think I need to research more on this. I don’t think quantity or weight can always be suitable measures for cost allocation as sometimes we have products whose dimensions are far greater than others.

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