Analysis of methods for distribution of indirect production costs

Accounting for indirect costs is a relevant and significant topic, as it is the key to increasing the efficiency of the enterprise. The analysis of the organization's expenses is used not only to assess the results of its activities for the reporting period, but also to make a forecast of its future activities. The accuracy of determining the level of production costs depends primarily on how rationally the indirect costs are distributed. There are two key methods for determining the level of the cost of certain types of products, which differ in the distribution of the organization's indirect costs.