Accounting of allocation of production enterprises’ overhead costs

Abstract

Taking into account the complexity of engineering technological cycles, the use of traditional approaches to the allocation of overhead costs at the researching enterprises is inexpedient and inefficient. The authors find out that to solve this problem it is not enough to choose only one base of allocation because the formed prime cost with such an approach will not meet the reality. That is why it is suggested to use a multilevel allocation of overhead costs. The proposed approach involves the allocation of overhead costs at the following levels: fixed and variable, with shops of main and auxiliary production, calculation stations, some orders. Each level involves the selection of individual allocation bases that are grouped on economic, technological and integrated ones.

Keywords

• accounting
• overhead cost
• overhead cost allocation
• overhead cost allocation base