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Reciprocal Allocation Method in Service Departments. The Case of a Production Enterprise

Reciprocal Allocation Method in Service Departments. The Case of a Production Enterprise AbstractThe main aim of this article is to indicate the role of reciprocal allocation method in the process of costs calculation. In the environment of nowadays companies, often taking very complex organisational forms, the existence of service departments becomes of great importance. Although, as far as management accounting processes are concerned, which lead to identifying the product cost, the service departments’ costs come out to be of minor importance. This article means to prove that the service departments’ costs and their reliable settlement are a desirable source of information about the products. This work consists of two parts. First of them features theoretical considerations and a critical analysis of subject literature. In the latter part, the service departments’ costs calculation will be presented, basing on reciprocal services in a production enterprise from chemical industry. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Management Systems in Production Engineering de Gruyter

Reciprocal Allocation Method in Service Departments. The Case of a Production Enterprise

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Publisher
de Gruyter
Copyright
© 2017 Ewelina Papaj, published by De Gruyter Open
eISSN
2450-5781
DOI
10.1515/mspe-2017-0040
Publisher site
See Article on Publisher Site

Abstract

AbstractThe main aim of this article is to indicate the role of reciprocal allocation method in the process of costs calculation. In the environment of nowadays companies, often taking very complex organisational forms, the existence of service departments becomes of great importance. Although, as far as management accounting processes are concerned, which lead to identifying the product cost, the service departments’ costs come out to be of minor importance. This article means to prove that the service departments’ costs and their reliable settlement are a desirable source of information about the products. This work consists of two parts. First of them features theoretical considerations and a critical analysis of subject literature. In the latter part, the service departments’ costs calculation will be presented, basing on reciprocal services in a production enterprise from chemical industry.

Journal

Management Systems in Production Engineeringde Gruyter

Published: Dec 1, 2017

References