Author/Authors
BENGÜ, Haluk University of Nigde - Department of Business Administration, Turkey , CAN, Ahmet Vecdi University of Sakarya - Department of Business Administration, Turkey
Title Of Article
AN EVALUATION ABOUT THE IMPORTANCE OF CRITERIA DETERMINING THE ALLOCATION SEQUENCE IN STEP-DOWN ALLOCATION OF MANUFACTURING OVERHEAD COSTS
شماره ركورد
44235
Abstract
In today’s business environment, one of the most popular methodologies used to allocate manufacturing overhead cost (MOC)s on products is “Step-down Allocation Method . In this methodology, transferring of manufacturing overhead costs from supplementary cost centers to primary cost centers are made considering specific rules (Can, 2003:92). Also, after manufacturing overhead costs accrued in one of the supplementary cost centers are allocated to other cost centers, they can not again be allocated again (Üstün,1994:251).Consequently, sum of manufacturing overhead costs is gathered all together in primary cost centers to be allocated (Altuğ, 2001:225). However, in these situations, from which of cost center to start allocation becomes an important subject. Here, the sequence of allocation plays two important roles and has two different effects. The first effect of sequence of allocation is on cost centers by means of cost planning and control. The second effect is on product parties by means of production planning and product costing pricing.In this study, the sequence of allocation of manufacturing overhead costs is tried to be presented by a hypothetical application.
From Page
751
NaturalLanguageKeyword
Manufacturing overhead costs , Step , down allocation methodology , Cost center
JournalTitle
Ege Academic Review (EAR)
To Page
771
JournalTitle
Ege Academic Review (EAR)
Link To Document