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Production Costs Management by Means of Indirect Cost Allocated Model

Berislav Bolfek and Jasna Vujcic ()
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Jasna Vujcic: High school ''Matija Antun Reljkovic'', Slavonski Brod, Croatia

Interdisciplinary Management Research, 2009, vol. 5, 215-223

Abstract: Management costs in a business system requires planning, budgeting, monitoring and comparing of all kinds of expenses. When calculating a production through the production order system there always seems to appear the same dilemma; which key or keys should be chosen for allocating indirect costs. As a result, in addition to the well-known classical methods for allocating indirect costs, a new method is developed in the form of a Model for allocating indirect costs. By applying the above-mentioned model, the classical methods are omitted from the process of allocation indirect costs, which contributes to an easier and faster planning, monitoring, comparing, and reducing costs.

Keywords: direct costs; indirect costs; allocation of costs (search for similar items in EconPapers)
JEL-codes: D24 (search for similar items in EconPapers)
Date: 2009
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Citations: View citations in EconPapers (1)

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Handle: RePEc:osi:journl:v:5:y:2009:p:215-223