Burden allocation methods

Seminar paper from the year 2003 in the subject Business economics - Business Management, Corporate Governance, grade: 1 (A), Manchester Metropolitan University Business School (Management Accounting), language: English, abstract: The company and industry are currently both experiencing a process of change. This has lead to the need to evaluate alternatives to the current cost accounting system. This requires the evaluation of whether burden should be traced to either one, two or three cost pools. Currently burden is only being traced to one. Furthermore the company is certain that it will soon have to purchase expensive machinery, thus changing it operational asset base and cost structure, in order to remain competitive. Therefore I will also examine the effect that this acquisition would have upon the current and alternative systems so as to see which system would be the most appropriate and effective method to supply management with the necessary information need to be able to outperform both market and competition. If any of these methods comes in question at all.