The cost allocation principle defines how products are charged (with costs). Accordingly, it is used in cost unit accounting. The following cost allocation principles can be distinguished:
Cost causation principle
The cost causation principle, according to which the costs are to be distributed exactly among the cost units, ie only the cost units may be allocated to the cost units that they actually caused. Adherence to the cost causation principle is not possible when using full cost calculations, but is taken into account in partial cost calculations.
The principle of the averagethat at Full cost accounting Applies. It represents a mitigation of the cost causation principle and states that the costs only have to be offset as precisely as possible. It depends above all on the Overhead to distribute correctly so that the goods as cost bearers are not burdened with costs that they did not cause.
Cost sustainability principle
The cost sustainability principle, in which the costs are allocated to the cost bearers according to their resilience and thus more or less arbitrarily. It is also referred to as: Resilience Principle and Coverage Principle.
The cost sustainability principle pursues different goals than the other two principles. Ultimately, it runs counter to them, as the actual costs incurred are ignored.
The resilience of the individual cost bearer with the cost sustainability principle is generally greater, the higher its profit contribution.