Kostnaðarúthlutun
Kostnaðarúthlutun, a term originating from Icelandic, translates to cost allocation or cost apportionment in English. It refers to the process of assigning indirect costs to specific cost objects within an organization. These cost objects can be products, services, departments, projects, or customers. Unlike direct costs, which can be easily traced to a specific cost object (e.g., raw materials used in a particular product), indirect costs (also known as overhead) are incurred for the benefit of multiple cost objects and cannot be directly assigned.
The purpose of kostnaðarúthlutun is to accurately determine the full cost of producing a good or service,
Effective kostnaðarúthlutun requires a clear understanding of the organization's cost structure and the relationships between indirect