Accountancy Forum

I'm an employee at XYZ University Hospital in Planning&Budgeting department. I am upgrading the "Cost Allocation Model" for allocating service department costs of the institute and need professional advices and suggestions on the topic.

Currently the institute employs "Direct Apportionment Model" to allocate costs. The model is developed on MS-Excel and is in practice in institute since 2001.

Specifically, I want to know
>What does IFRS & GAAP says about Service Department Costing? What are the rules/standards that one needs to keep in mind while allocating service department costs?

>Where can I find the rule book of IFRS & GAAP that outlines the rules/standards/regulations that one companies need to follow?

>Is there any specialized software for Service Department Costing that can be employed to curtail the time that goes in developing, managing & updating a self-made Excel model?

In addition, any other professional advices/suggestions are also welcome. Do pour in anything that you think worth mentioning!

Thank you.

Regards,
Tanveer Ejaz

<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by Tanveer Ejaz</i>
<br />I'm an employee at XYZ University Hospital in Planning&Budgeting department. I am upgrading the "Cost Allocation Model" for allocating service department costs of the institute and need professional advices and suggestions on the topic.

Currently the institute employs "Direct Apportionment Model" to allocate costs. The model is developed on MS-Excel and is in practice in institute since 2001.

Specifically, I want to know
>What does IFRS & GAAP says about Service Department Costing? What are the rules/standards that one needs to keep in mind while allocating service department costs?

>Where can I find the rule book of IFRS & GAAP that outlines the rules/standards/regulations that one companies need to follow?

>Is there any specialized software for Service Department Costing that can be employed to curtail the time that goes in developing, managing & updating a self-made Excel model?

In addition, any other professional advices/suggestions are also welcome. Do pour in anything that you think worth mentioning!

Thank you.

Regards,

Tanveer Ejaz
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">

IMO, Service department costing, as you referred to cost-allocation, is not a topic that is covered under GAAPS or IFRS. Cost-allocation sort of stuff is more in the Cost Accounting domain.

So you'll have to go with the method you are following or a better one, if it comes to your knowledge.

Any member who doesn't agree with me is free to correct me.

Apka Pyara. . .