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CHAPTER 1: THE EVOLUTION OF THE PURCHASES
1.10 Accounting for cost centers and analysis A.B.C.
To the day today particular attention is concentrated to the centers of analysis better known like
centers than cost.
Until some time it makes in the industrial accountings, the costs directly were attributed to the
products without to filter them to the imputation centers in which they had had origin.
I use of the centers, by now
of great spread and use is particularly useful for the following reasons:
Such calculation comes executed in order to understand mainly which activities convene to carry out to
the just inner one and which instead convene to entrust to thirds party.
- Corrected imputation of the costs, especially for those indirect ones, to the single products;
- Greater control and
responsabilization of the various business areas.
- Availabilities of give to you in the decisional processes on the single
Till now in fact all the costs came attributed
to all the products.
With such system, instead for every product they come calculates the costs to you that effectively
they come supported.
In order to calculate such cost they come taken in consideration the direct costs
11 and indirect costs 12 that subsequently come
decomposed and only attributed to those products for whose production has been supported effectively those costs.
The decomposition of the cost happens through the method of the division proporziona them that it is based on the center concept;
a indirect cost in fact cannot be attributed to the product that has supported it, and therefore it is attributed to its
center of belongings.
The center constitutes a recognizable independent entity univoca and to the inside of corporate
structure 13 .
Every single product receives a quota cost reported to a center in proportion to the use that it has made of the center.
The usury of the center can be based on a any criterion of reference:
To the aim to calculate the "true cost" attributable to a product, a diffused approach is the
Activity Based Costing 14 .
This finds a precise the following motivation in consideration: between the product and the consumption of sure resources not
there is a direct tie.
- Number of worked hours.
- Number of produced amounts.
- Employed time machine.
- Meters you squared of the premises.
Therefore it is not the product that generates the costs directly and it cannot be therefore the
only object of calculation to which chargeing all the costs directly.
The product, in fact, for being obtained and being
sold demands that they come carried out of the activities and they are these last ones that consume resources and generate
In this within the single activities are definable as that with of actions or elementary tasks that have for
objective that one to distribute a service or to indirectly produce output tangible (semifinished or a member of a product)
that it concurs, directly or, "to manifacture" the offer that the enterprise proposes its customers.
The analysis of the
management for activity allows to understand better than what organizational units happen to the inside of the functions and
the correspondents and to pick the ties between the functions and to manage the company as it arranges.
Wanting to define
it is made logical that the A.B.C. second characterizes the introduction of a process of determination of the product cost,
can be indicated following is made:
This analysis comes by now carried out in all the companies with the scope
to understand which activities is better to carry out inner and to carry ahead therefore one political of make and which
instead is preferibile to entrust to thirds party.
- Definition of the activities and the relative one slowly of the accounts, with the indication of the centers of cost for
- Attribution of the costs specifically and objective attributable to the various activities; draft therefore to determine
the resources quantification absorbed from the various activities through of the pointers of employment
of resources16 proceeding to one they.
- Determination of the cost of the single activities for unit of determining of cost 17 ,
dividend the cost total of the activity for the total value attributed to the determining one of cost.
- If it is thought necessary, it can also be proceeded to charge to cascade, through prechosen cost driver, the costs from
the activities of support, than reputa possible not to charge itself directly to the product, to the activities of fabrication
and sale. Even if such imputation is not from all the economists accepted.
- Imputation of the costs totals of the single
activities to the products, multiplying the cost for unit of cost driver for the value that the cost driver assumes with
reference to the product calculation object.
Also supplyings can be subject to such analysis, there will be assets
therefore that it convene to produce and assets that are better to acquire from subjects thirds party.
In this according to case integrated supply it becomes one of the opportunities that are shown to the companies in order
not to take care themselves directly of that supply, but of having however good savings of cost.
- Notes 11: Legacies to a product or one production store clerk, like as an example: the costs supported for
the purchase, the costs of the working to the aim to obtain a finished product.
- Notes 12: They derive instead from representation and commercialization, administration costs.
- Notes 13: Every company is constituted therefore from more centers.
- Notes 14: ABC Analysis.
- Notes 15: Activity Cost Pool.
- Notes 16: Resource driver: that they can be the hours man, the hours machine, the percentages of I use.
- Notes 17: Cost Driver.