Cost pool

Cost pools is an accounting term that refers to groups of accounts serving to express the cost of goods and service allocatable within a business or manufacturing organization. The principle behind the pool is to correlate direct and indirect costs with a specified cost driver, so to find out the total sum of expenses related to the manufacture of a product.

While the exact construction cost pools differs, most companies choose to form numerical based sequences that can then be allocated to the desired project. More frequently, a single cost pool will have up to ten digits in the sequence, with certain groups of those digits used to relate back to the project. For example, the first three digits of the cost pool may categorize a particular department, and the next three assign the project itself. The remaining four digits assign a specific sub-group of expenses of the project, such as clerical costs.

References

• Khler, Eric, A Dictionary for Accountants
• Most, Kenneth, Advances in International Accounting

This accountancy-related article is a stub. You can help Wikipedia by expanding it.v · Categories: Generally Accepted Accounting Principles Accounting stubs Wikimedia Foundation. 2010. Игры ⚽ Поможем написать реферат Cost per procedure Cost reduction Look at other dictionaries: cost pool — See: activity cost pool …   Accounting dictionary activity cost pool — cost pool In activity based costing, a collection of indirect costs grouped according to the activity involved. To identify the costs of each activity, cost pool managers will have to ask such questions as: • What staff are involved with the… …   Accounting dictionary activity cost pool — cost pool In activity based costing, a collection of indirect costs grouped according to the activity involved. To identify the costs of each activity, cost pool managers will have to ask questions such as: • What staff are involved with the… …   Big dictionary of business and management Activity Cost Pool — In managerial accounting, a set of costs which are incurred when certain operations are performed within the organization. By accounting for all of the costs incurred in a specific activity with a pool, it is simpler to assign those costs to… …   Investment dictionary Накопитель (пул) затрат (COST POOL)  — См. Центр затрат (Cost Center) …   Словарь терминов по управленческому учету cost driver — In a system of activity based costing, any factor such as number of units, number of transactions, or duration of transactions that drives the costs arising from a particular activity. When such factors can be clearly identified and measured,… …   Accounting dictionary cost driver — In a system of activity based costing, any factor such as number of units, number of transactions, or duration of transactions that drives the costs arising from a particular activity When such factors can be clearly identified and measured, they …   Big dictionary of business and management Pool e music — est un label de musiques électroniques fondé en 2002 par Antoine Clamaran et Laurent Pautrat. Sommaire 1 Historique 2 Artistes découverts par Pool e Music 3 Distinctions et récompenses (Disques d Or) …   Wikipédia en Français Косвенные затраты групповые (INDIRECT COST POOL)  — Совокупность понесенных затрат, связанных одновременно с несколькими объектами отнесения затрат, которые невозможно связать с конкретным и единственным объектом отнесения затрат …   Словарь терминов по управленческому учету pool — See commodity pool. The CENTER ONLINE Futures Glossary (1) For mortgage backed securities, a pool is a group of mortgage loans backing an individual security issue. (2) In funds transfer pricing systems, a pool is an aggregation of funds to… …   Financial and business terms 18+ © Academic, 2000-2024 Contact us: Technical Support, Advertising Dictionaries export, created on PHP, Joomla, Drupal, WordPress, MODx. Mark and share Search through all dictionaries Translate… Search Internet Share the article and excerpts Direct link … Do a right-click on the link above and select “Copy Link”