Effect of the method of distribution of costs indirect cost of individual products

The author believes that the choice of cost allocation method, the result of the distribution must be as close as possible to the actual cost of a particular product of a particular type of indirect costs. In the article author highlighted three main methods of distribution of indirect costs and the application of the algorithm on the example of a furniture factory. The author noted that the use of the ABC technology would be justified, if the share of indirect costs is higher than the direct costs.