Proper cost allocation from the cost center (ie. Administration where costs incur) to a profit center (ie. Sales where profit is being generated) is an important task of accounting. Step-down cost allocation demo will show you how to use a step-down method in multiple steps to allocate general expenses to profit centers. In the second step costs will be allocated to individual products to enable a profitability analysis on the product level.
Intro: 2min | Demo: 12min)
Step-down cost allocation in multiple steps is a method in cost accounting in the organisations.
Our partner and CFO Daniel Potočnik explained what are the steps in the process and how to address them.
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