Menojäännöspoisto

Menojäännöspoisto, a Finnish term, translates to "expense residual removal" or "unallocated expense clearing" in English. It refers to an accounting practice where expenses that cannot be directly attributed to a specific cost object or department are grouped together and then allocated to various parts of the organization based on a predetermined method. This is often done at the end of an accounting period to ensure that all incurred costs are accounted for and distributed.

The primary purpose of menojäännöspoisto is to achieve a more accurate allocation of overhead costs. Without this process, some departments or products might appear more profitable than they truly are, as they would not be burdened with their share of these indirect expenses. Common examples of expenses requiring menojäännöspoisto include general administrative costs, rent for shared facilities, or depreciation of assets used across multiple areas.

The allocation method can vary significantly depending on the organization's structure and the nature of the expenses. Some common allocation bases include direct labor hours, machine hours, square footage occupied, or revenue generated. The key is to select a basis that logically reflects the consumption of the shared resource by the cost objects receiving the allocation. This process is crucial for effective cost management, pricing decisions, and performance evaluation.