Cost Allocation Accounting Methods Used in the Croatian Production Sector

Abstract

Before conducting the research, two main hypotheses were proposed: H1: The majority of Croatian production companies use traditional accounting methods for cost allocation. H2: Direct production costs make up the largest portion within the production cost structure for the majority of Croatian production companies. Because of this production cost structure, modern cost allocation accounting methods would not contribute to more reliable company profi tability evaluation and business decision-making. The research is based on a specifi c sample including every important Croatian public production company. The process of cost allocation process is not easy. It is a diffi cult and complicated procedure that requires the application of appropriate accounting methods. The process of allocating costs to cost objects is realized through the application of certain accounting methods. These accounting methods often cannot provide fair and objective cost allocation because they have arbitrary bases that are not always appropriate.

Information About Cost of Goods Produced and its Usefulness for Production Engineers – A Case of SME

“…As complete end planning, direction and co-ordination of all the manufacturing processes are important responsibilities of production engineering, decision-making process should be based on different kind of cost information included in the schedule of cost: financial and non-financial. Our finding is in accordance within the previous literature searching for different cost allocation methods that are on demands for service by division managers [8,13,14]. On that account, the article calls for transparency in schedule of cost of goods manufactured as it can increase the reliability in terms of production engineering needs.…”

Parametric Cost Estimation Model for Li-ion Battery Pack of E-motorcycle Conversion based on Activity Based Costing

“…Cost drivers must have a causality relationship with the activities and costs, it must be measured and explain the use of resources consumed during an activity [30]. Cost drivers should demonstrate correctly the relationship between specific activity and cost objects [31], [32]. One of the requirements of the construction of the cost driver is the cost parameter.…”

Cost Drivers: Reflexões Sobre Definições, Conceitos, Utilidades E Aplicabilidades

“…A atribuição e o rastreamento de recursos para as atividades baseadas em consumo, e também, dos custos das atividades aos objetos de custo (produto, serviços ou clientes) compõem as ações dos cost drivers. Primeiro ocorre o relacionamento entre os recursos e as atividades, depois entre as atividades e os objetos de custos (Chea, 2011;Cokins & Căpuşneanu, 2010;Kaplan & Cooper, 1998a;Perčević & Lutilsky, 2008).…”