Home  Journals  International Accounting  17(149) - 2010 December

Distribution of the overhead charge with application of the method of percentage ratios

Available online: 3 December 2010

Subject Heading: PROBLEMS OF ACCOUNTING

JEL Classification: 

The use of modern computer technologies gives ample opportunities in the storage and structuring of information, as well as in complex mathematical operations. Therefore, there is a growing number of more precise and practical in the calculation economic methods and models using computer technologies. Aim of the research is to develop a new method of distribution of overhead costs in financial and management accounting - method of percentage ratios. The work clearly shows all stages of the method with examples. Relevance of the study is due to the increase in the overall share of overhead costs, the increase in the number of different kinds of goods produced by enterprises and the improvement of computer technology. Consequently the use of this method is aimed at reducing man-hours/efforts spent on the distribution of overhead charges without the decrease in the accuracy.

Keywords: method, distribution, overhead charge, the account, percentage ratios

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ISSN 2311-9381 (Online)
ISSN 2073-5081 (Print)

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