Division calculation

Definition of division calculation

The division calculation is a relatively simple method of cost unit accounting that can be used for uniform mass production, e.g. B. in power plants, waterworks, mills, brickworks, primary industry.

Cost of a product unit in the division calculation

When calculating by division, the costs of a product unit are basically calculated by dividing the total costs of an invoice period by the quantity output in the period.

Forms of division calculation

• The single-level division calculation, which summarizes all costs for the accounting period or divides the individual cost groups by the amount of activity. Changes in stocks of finished or unfinished products are not permitted.

two-stage division calculation

The two-stage division calculation, in which changes in stocks of finished products are taken into account. Costs are no longer calculated as a total amount, but the manufacturing, administration and sales costs are split up.

multi-level division calculation

The multi-level division calculation, in which changes in the inventory of unfinished products can also be included.

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