Cost Attribution and Allocation through a Cost Center Structure: Case Study Application

The topic of the thesis concerns the design of a Full Costing product accounting system based on cost centers attribution and allocation. As case study application has been taken a company dedicated to the development and supply of products to steelmakers around the world. The main activities treated are: · Analyze the current production accounting system (Direct Costing), highlighting its advantages/disadvantage. · Develop a full costing accounting system, using a cost center structure and explaining why this model will be more suitable for the company. · Analyzing the profit & loss statement and the cost information of a product line, highlight the benefits that the full cost information will provide to the company. · Identify the key actions necessary to pass over the 2009 steel world crisis which destroyed the profits of almost all the key refractory suppliers in the steel market