THE DISTRIBUTION COST PROGRAM.
Distribution costs have certain unique characteristics that resist the refined tools of production accounting. Production accounting deals with quantitative, mechanical functions capable of physical measurement. Distribution accounting is confronted by qualitative functions incapable of finite measurement. The challenges confronting distribution accountants are the selection of functions, the allocation of primary expenses to functions, and the determination of service units. The selection of functions depends on the degree of cost control and cost responsibility desired. Accountants and distribution executives should determine the functions jointly. The task of subdividing primary expenses into functions becomes involved when an expense is common to one or more functions. This accounting trouble-area is frequently labeled "joint-cost problems." The application of production accounting tools to distribution problems proved inadequate and exposed the need for specialized distribution accounting techniques.
- DOI
- 10.2308/tar-7060829
- Volume
- 33 (4)
- Pages
- 625-631
- Language
- en
- Export
- BibTeX
- Sources
- openalex crossref