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What is the modern methods for the distribution of the additional costs (indirect costs)

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Question ajoutée par Ahmed Hussein Sayed Abdul-Aziz , Chief accounting , Saudi Binladin Group
Date de publication: 2013/06/12
Utilisateur supprimé
par Utilisateur supprimé

ABC

Khaled Abdelrehim ACCA DipIFR CMA
par Khaled Abdelrehim ACCA DipIFR CMA , Financial Analysis Assistant General Manager , Khalda Petroleum Company

1- the direct method

2- the step down method

3- the reciprocal method

SALIK RAFIQUE
par SALIK RAFIQUE , Lecturer , PAC Group of Colleges

Absorption Costing marginal Costing ABC

Ahmed kandil
par Ahmed kandil , Cost Controller , Battour Holding Cpompany

service cost distrubtion 

1- direct method 

2 - step down method 

3 - receprocal method 

the better is receprocal 

overhead cost 

 

ACTIVITY BASED COST is the better to disribution overhead 

 

Ahmed Hussein Sayed Abdul-Aziz
par Ahmed Hussein Sayed Abdul-Aziz , Chief accounting , Saudi Binladin Group

THANK YOU EVERY BODY AND GOOD LUCK

·         Both step-down method and reciprocal method belongs to the allocation metods which can be used to allocate support department costs to operating department.(Now, I wanna tell you the three allocation

 

·         methods are direct method, step-down method and reciprocal method.)First of all, the step-down method allocates some (but not all) support department costs to other support departments. Secondly, the  first support department's costs are allocated to all operating and support departments that use its services. Then, each subsequent support department's costs are allocated to all operating and support departments that use its services, except any support department whose costs were already allocated. What's more, allocation order must be determined.For reciprocal method, first and foremost, the reciprocal method allocates all support department costs to other support departments. Secondly, the first step is to compute the total costs of each support department when its usage of other  support department services is taken into consideration. In addition, support department costs are then allocated to all other operating and support departments that consume its services.I hope my  answer can help your work. If I have some grammar mistakes, please point out,  first support department's costs are allocated to all operating and support departments that use its services. Then, each subsequent support department's costs are allocated to all operating and support departments that use its services, except any support department whose costs were already allocated. What's more, allocation order must be determined.For reciprocal method, first and foremost,the reciprocal method allocates all support department costs to other support departments. Secondly, the first step is to compute the total costs of each support department when its usage of other support department services is taken into consideration. In addition, support department costs are then allocated to all other operating and support departments that consume its services.

 

   ** i need worksheet to applying ABC method (one of th modern methods )

       If I have some grammar mistakes, please point out,

 

·         Thank you very much.

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