MixBC Method: a New Approach for Distribution of Indirect Costs and Expenses to Products

摘要

In cost management, the products cost is a valuable and necessary information. Nevertheless, distributing indirect costs and expenses to products may involve several uncertainties, what can lead to imprecise results and decision mistakes. The aim of this paper is to construct a method that would reduce the uncertainties found in current costing processes, by modelling and providing the analytical deduction of the method MixBC ? Mix Based Costing. In sequence, there was performed an example of construction projects costing using MixBC. By analysing different production scenarios, this method permits indirect costs and expenses to be distributed among the products without the need of arbitrary apportionment.