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Costs split

on 2/27/15, 8:05 AM 713 views


The question is how you split the cost when you consume internal products. In production you split the cost during the production when you consume products thought the manufacturing orders.

i.e. we buy 10 laptops for internal use. When we are buying we don’t know the division (cost centre ie: RRHH)  so we choose main Company cost centre. The laptops are in the warehouse. Then we began to give the laptops to 3 divisions:

Division1(RRHH)              3 laptops.

Division2(Sales)               4 laptops.

Division3(IT)                     3 laptops.

As we are assigning the laptops to different divisions we need to split the cost between the 3 divisions cost centres.

The questions is: how do we split the cost when we are assigning the laptops?

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Asked: 2/27/15, 8:05 AM
Seen: 713 times
Last updated: 3/16/15, 8:10 AM