BCAS-5
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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 5
Indirect Costing Rates
BCAS-5
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BCAS 5: Indirect Costing Rates
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 provide guidance to companies relating to the
allocation of capacity-related indirect cost. This standard presents the application of
predetermined overhead rates, its calculation and rationale of using the same. The standard
also focuses on the impact of capacity and allocation bases on calculating predetermined
overhead rates.
Key Features :
Proposing a representative predetermined overhead rate
Explaining different levels of capacity and its impact on indirect cost rate
Comparative discussion on different allocation bases
Illustrating the computation of rates and its application
Identifying and explaining the variances resulting for allocation based on standard
BCAS-5
Contents
Particulars
Paragraphs
Introduction
Scope
1-4
Definitions
Standards
Recording and Reporting
Appendix
