KUTÁČ Josef VSB - Technical University of Ostrava

Spoluautoři SAMOLEJOVÁ Andrea, STOCH Dominika, ANDRUŠKA Libor

This article is focused on the issue of overhead costs allocation used for target costing. The first phase is allocation of overhead costs of secondary (supporting) cost centres to the primary (production) cost centres. In the second phase, the overhead costs of the primary cost centres are allocated to products or activities. The commonly used allocation key includes the standards of labour input in the production process. The analysis in this article highlights the inappropriateness of using this allocation key in the calculations used in price negotiations.