kulujaotusi

Kulujaotusi, often translated as cost allocation or expense distribution, refers to the process of assigning indirect costs to specific cost objects. In business and accounting, direct costs are those directly traceable to a product, service, or project, such as raw materials or labor. Indirect costs, on the other hand, are expenses that cannot be easily or directly linked to a particular cost object, examples include rent, utilities, and administrative salaries. The purpose of kulujaotusi is to ensure that all costs incurred by an organization are accounted for and assigned to the activities or products that benefit from them. This is crucial for accurate cost accounting, pricing decisions, profitability analysis, and performance evaluation.

Various methods exist for kulujaotusi. Traditional methods often use a single overhead rate, calculated by dividing total indirect costs by a single allocation base like direct labor hours or machine hours. More sophisticated approaches, such as Activity-Based Costing (ABC), identify specific activities that drive costs and allocate indirect costs based on the consumption of these activities by different cost objects. The choice of allocation method can significantly impact the perceived cost of products or services, influencing management decisions. Effective kulujaotusi provides a more realistic understanding of the true cost of operations, enabling better resource management and strategic planning.