kostnadsstedfordeling

Kostnadsstedfordeling, often translated as cost center allocation or cost object distribution, is an accounting practice used to assign indirect costs to specific cost objects. Cost objects can be products, services, departments, projects, or any other entity for which costs are tracked. The primary goal is to understand the true cost of these objects more accurately than simply assigning all overhead to a single pool.

This process typically begins by identifying direct costs, which are directly attributable to a cost object, such as raw materials for a product. Indirect costs, also known as overhead, are more challenging to assign. These include expenses like rent for a factory, salaries for administrative staff, or utilities. Kostnadsstedfordeling involves a systematic approach to allocate these indirect costs.

A common method is to establish cost pools, which are groups of similar indirect costs. Then, a cost driver is selected for each cost pool. A cost driver is a factor that causes a change in the cost of an activity. For example, machine hours might be a cost driver for factory depreciation, while direct labor hours might be a cost driver for supervisory salaries. The total cost in a cost pool is divided by the total amount of its cost driver to arrive at an allocation rate. This rate is then applied to each cost object based on its consumption of that cost driver.

The benefit of kostnadsstedfordeling lies in providing a more detailed understanding of profitability for individual products or services, aiding in pricing decisions, and identifying areas where costs can be reduced. However, the accuracy of the allocation depends heavily on the chosen cost drivers, and an inappropriate driver can lead to misleading cost assignments.