What does it really cost? allocating indirect costs.

Snyder, Herbert; Davenport, Elisabeth

Abstract

Better managerial control in terms of decision making and understanding the total costs of a system or service result from allocating indirect costs. Allocation requires a three-step process of selecting cost objectives, pooling related overhead costs, and selecting costs bases to connect the objectives to the pooled costs. Allocation may be simple, relying on a single base, or activity-based costing (ABC), relying on multiple bases. Contrasts the methods of allocation, and argues that ABC may be more useful for costing electronic services

Citation

Snyder, H., & Davenport, E. (1997). What does it really cost? allocating indirect costs. Bottom Line, 10(4), 158-164. https://doi.org/10.1108/08880459710183035

• Journal Article Type: Article
• Publication Date: 1997
• Deposit Date: Jul 1, 2010
• Journal: Bottom Line
• Print ISSN: 0888-045X
• Publisher: Emerald
• Peer Reviewed: Peer Reviewed
• Volume: 10
• Issue: 4
• Pages: 158-164
• DOI: https://doi.org/10.1108/08880459710183035
• Keywords: Activity-based costing; cost accounting; cost allocation
• Public URL: http://researchrepository.napier.ac.uk/id/eprint/3298
• Related Public URLs: http://dx.doi.org/10.1108/10176749710368389