Chp-12-cost-allaction(上财-管理会计).pdf

Introduction to Management Accounting Chapter 12 Cost Allocation Chapter 12 Learning Objectives 1. Describe the general framework for cost allocation. 2. Allocate the variable and fixed costs of service departments to other organizational units. 3. Use the direct and step-down methods to allocate service department costs to user departments. Chapter 12 Learning Objectives 4. Allocate costs from producing departments to products or services using the traditional approach. 5. Allocate costs associated with customer actions to customers. 6. Allocate the central corporate costs of an organization. 7. Allocate joint costs to products using the physical-units and relative-sales-value methods. Learning General Framework for Cost Allocation Objective 1 Cost allocation methods comprise an important part of a company’s cost management system. Four types of cost objectives: Service departments Producing departments Products/services, and customers General Framework for Cost Allocation Producing departments are where employees work on the organization’s products or services. Service departments exist only to support other departments or customers. General Framework for Cost Allocation Direct costs can be physically traced to each department. Indirect costs must be allocated. Many companies develop allocation methods to assign service department costs to the producing departments. General Framework for Cost Allocation All organizations accumulate costs for products or services for financial reporting purposes. Increasingly, companies measure and manage the costs and p