ALLOCATION OF INDIRECT COSTS OF PRODUCTION: IMPACTS ON COSTS AND PRICES IN AN AUTOMOTIVE PAINT COMPANY

Abstract

Identify costs that are applied directly to the products is simple compared to the difficulties of apportioning costs not directly identified in the process. It is necessary to know the production process to understand the relationship that each item has with indirect costs, thus applying, methods of assessment that best suits the needs of each company. Thus, this research aims to analyze how the allocation of indirect costs in total cost and impact on pricing strategies to sell a company car paint. To achieve the goal, the methodology used was a single case study. It was concluded the company object of this study have difficulty with indirect costs, and these are crucial if misdirected, may impact since the fixed price, even the withdrawal decisions of line items.