Activity-based costing (ABC) is a costing methodology that looks at the actual consumption by each activity within an organization. Costs are then assigned based on actual usage.
Depreciation expense dollar amounts can also be distributed to divisions or cost centers within a corporation. The Bassets eDepreciation expense allocation module easily accomplishes this through the use of allocation pools. An allocation pool is defined and a charge back percentage is assigned to each division. One or more projects can then distribute expense based on the percentages. Allocation pool percentages can be changed on a quarterly basis and prior allocation percentages are retained for historical reporting purposes.
During reporting, standard reports can display depreciation amounts by asset or further break down the expense based on the associated allocation pool of each asset. The reports can be sorted and subtotaled in many ways to display extensive allocation detail or consolidated summary information.
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More information about Bassets eDepreciation software can be found at Bassets.net. While there you can set up a demonstration, download a free evaluation copy and get a personalized pricing estimate.