Allocated Costs

--ALLOCATED COSTSACCOUNTINGExecutive SummaryAfter carrying out salute apportionment , a number of inferences bottomland be drawn . The firm exit allocate be and this go away improve efficiency in the use of resourcesThe attention ought to improve the performance and activity , through a appeal reduction mechanism , adoption of a favourable market policy and a sound full to capacity issue .Table of contentsTitle page ---------------------------------------- 1Executive summary---------------------------- 2Table of contents -------------------------------------------------------- 3 Introduction ------------------------------------------ 4Allocation of cost --------------------------- 4 p References ------------------------------------------------------------------ 6INTRODUCTIONThis report is based on overhead allocation is aimed at measuring the general performance of the company susceptibility to generate revenue and use of resources efficiently . The figures would help users to make it an in- depth understanding of the company s allocation and efficiency with which it is utilizing its assets . For the forethought , their objective would be on how to improve on silly areas and maintain good performance Its intended users are the heed of the companyThe reportSouth Carolina Electricity and Gas has been chosen for purpose of this assignment . The be chosen to be allocated are business licenses rates be , and canteen maintenance costs . I have fake the expenses for these to be 123 ,000 and 136 ,000 . These expenses will be allocated to production surgical incision , diffusion department and arrangement departments . They will be allocated based on floor area occupied by each department , which have assumed to at 60 , 25 and 15 respectively for business licenses and rates costs . While for canteen expenses based on employees .

Who have assumed to be 250 , degree Celsius and 50 respectivelyIt will be allocated as followscost department administration departmentbusiness licenses and rates 123 ,000 Floor area 60 of 123 ,000 73 ,800 25 of 123000 30 ,750 15 of 123 ,000 18 ,450Canteen expenses 136 ,000 No . of employees 250 X136000400 85 ,000 c X136000400 34 ,000 50 X136000400 119 ,000 This allocation will be employ to assist the management to know the amount of money will allocated to each department . It will also assist in the control of costs so as only those costs that necessary are incurred . This means that each department will be required to maintain those costs that are shown as allocated . It is up to the management to know which costs that need to reducedReferencesAsk , U , Ax , C . and Johnson s (1996 cost management in Sweden : from innovational to post modern management accountingDrury C (2000 Management and cost Accounting 5th edition ,business press Thomson LearningWald J (2000 ) Biggs s damage accounting The English Language Book Society and MacDonald and Evans Ltd capital of the United Kingdom PlymouthPAGEPAGE 6...If you want to get a full essay, order it on our website: Ordercustompaper.com

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