What Is Fee Splitting?

Cost sharing refers to the sharing of common expenses among various departments and products, which facilitates the scientific calculation of production costs.

Cost-sharing

Right!

Cost sharing refers to the sharing of common expenses among various departments and products, which facilitates the scientific calculation of production costs.

The reasons for cost sharing are:

1) Modern production leads to the emergence of common costs, and high technology has further increased the proportion of common costs, which can be said to be ubiquitous;

2) from

The basic procedures for cost sharing include:

1) OK

(1) Cost sharing and continuous cost reduction

Cost sharing should be able to promote a sustainable cost reduction mechanism internally.

For example, in

The characteristics of the cost ratio under high technology are as follows: the non-productive sector is increasing, the indirect costs have risen sharply, the types of expenses that need to be shared have increased, and the increasing research and development expenditures. In cost accounting, some expenses may not be allocated, but they will affect product pricing strategies, such as increasing marketing expenses, restructuring expenses, and merger and acquisition preparations.

The allocation standard of cost sharing is very important. If it is not selected properly, it may have a potential negative impact on the business activities of the enterprise. At this time, the main issues to be considered are:

1) Change to indirect to direct as much as possible, such as using activity cost method;

2) Control increasing indirect costs, such as introducing market competition mechanisms, outsourcing and strategic restructuring.