Production Costs Management by Means of Indirect Cost Allocated Model

Management costs in a business system requires planning, budgeting, monitoring and comparing of all kinds of expenses. When calculating a production through the production order system there always seems to appear the same dilemma; which key or keys should be chosen for allocating indirect costs. As a result, in addition to the well-known classical methods for allocating indirect costs, a new method is developed in the form of a Model for allocating indirect costs. By applying the above-mentioned model, the classical methods are omitted from the process of allocation indirect costs, which contributes to an easier and faster planning, monitoring, comparing, and reducing costs.