FIN Overhead Cost

Overhead cost allocation options in Product costing

A well organized cost accounting system can provide valuable inside into product pricing, cost trends, performance of departments (cost centers, profit centers), production and personnel capacity requirements. However, it is very rarely that controllers properly consider the extent to which cost accounting can be beneficial. If direct cost allocation does not cause much problems due to its nature and clear connection to the product (e.g. via BOM/Routing), indirect costs are …

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