BCAS-3
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BANGLADESH COST ACCOUNTING STANDARDS
The Institute of Cost and Management Accountants of Bangladesh
ICMA Bangladesh, ICMA Bhaban, Nilkhet, Dhaka-1205 Bangladesh
BCAS 3
Cost Allocation Bases
BCAS-3
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BCAS 3: Cost Allocation Bases
Summary
Effective Date : ICMAB prepares this standard for ultimate use and adoption by every company
operating in Bangladesh at its own discretion starting from the period beginning on July
1, 2014.
Objective : The main purpose of this standard is to guide companies for selecting appropriate
cost allocation bases to allocate indirect costs to cost objects. Different types of cost
drivers, viz., transaction, duration and intensity drivers are presented here. It also
provides a guideline to choose different drivers for different cost pools so that indirect
costs can be rationally and economically traced with cost objects. Cost allocation in
utility companies via different allocation bases is also presented here.
Key Features :
Identifying different types of cost allocation bases (cost drivers)
Presenting a general guideline for choosing appropriate cost allocation base
Presenting cost allocation in utility generating companies
Focusing on the wrong choice of cost allocation base for allocating indirect costs
Identifying different reporting requirements related to cost allocation bases
BCAS-3
Contents
Particulars
Paragraphs
Introduction
Scope
1-2
Objective
3-6
Definitions
Standards
Appendix
