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Allocation cost Fixed cost and valuation of inventory


I need help on the following issue .Thi is urgent .

In product costing we need to take the value of Fixed over head ( say Power ) to

The inventoy value. At the same time the client needs to see the power cost as

Cost component ( Activity confirmation will not be possible for power ).

Please help me to understand how the common cost (fixed ) can be allocated to the material .

Please give a detail view of the process to follow.


Somendra N Dey

Former Member
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