Cost Assignment or Cost Attribution refers to the procedures by which direct or indirect costs are charged to or made the responsibility of particular cost centers, and ultimately charged to the products manufactured or services provided by the organization.
Departmental accounting involves the process of providing accounting information analyzed by department, allowing each department of an organization to function independently as a cost center, revenue center, or profit center. This enables department managers to assess their department's financial performance effectively.
An Overhead Analysis Sheet, also known as an Overhead Distribution Summary, is used to allocate manufacturing overhead costs to various cost centers within an organization using appropriate allocation or apportionment techniques.
A single-capacity system in accounting refers to an accounting structure in which each activity or cost element is identified as serving only one purpose—either serving as a cost center or a revenue generator. Unlike the dual-capacity system, the single-capacity system does not recognize dual roles for cost centers or activities.
