Equivalence digit method

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The equivalence point method is in the cost accounting a method of cost calculation for joint production . The costs incurred by the input factors are allocated to the individual products using a key , the so-called equivalence numbers .

description

As with the other methods of cost allocation, the conservation rate of the total cost applies, that is:

The costs for the main product, mostly for the product with the highest amount, are given, for example, the equivalence number 1.Using selected key figures (average market prices, physical properties, etc.), equivalence numbers are formed by suitable definitions of the relationships between co-products. If you multiply the equivalence numbers by the production or sales figures, you get the allocation key for a certain product type. This can be used to calculate the cost of a co-product, both for the main product and for by-products.

Application examples

An aircraft can determine the cost of the transportation service by dividing air freight and passengers by weight. The average passenger weight of the booked seats is to be related to the weight of the loaded air freight container.

  • a passengers = m pass / (m pass + m freight )
  • a freight = m freight / (m passport + m freight )

In the case of a refinery , one can simply assume the input crude oil and the products gasoline, diesel and heavy oil as well as (flaring) losses. The number of equivalence method can use the energy content of the products as a key here. E is the product of energy density and production volume.

  • a B = E B / (E B + E D + E S )
  • a D = E D / (E B + E D + E S )
  • a S = E S / (E B + E D + E S )

In cogeneration, the Carnot method divides the fuel into the products of useful heat and electrical work using the exergy content of the useful energies as the key.

  • a el = η el / (η el + η c × η th )
  • a th = (η c x η th ) / (η el + η c × η th )

With the reference efficiency method, the key is the thermal and weighted electrical efficiency, whereby the weighting factor is the ratio of thermal to electrical reference efficiency (γ = η th, Ref / η el, Ref ).

  • a el = (γ η el ) / (γ η el + η th )
  • a th = η th / (γ η el + η th )

criticism

Criticism of the equivalence number method is justified by the fact that completely arbitrary and arbitrary keys can be chosen - e.g. B. in the case of utility bills, allocation of water consumption according to the number of residents or living space.

Derivation

From the one-dimensional input I arises with a two-dimensional output O 1 = f 1 (I) * I , and O 2 = f 2 (I) * I . ( Note: f can, for example, be interpreted as the conversion efficiency of the input to the respective output. More than 2 co-products are also conceivable.)

Let the costs k 1 , k 2 be the variable costs of the two output quantities to be determined. k I stands for the known variable cost of the input. K var denotes the respective sum of the variable costs. a 1 and a 2 are the allocation factors for the respective output, ie they describe the proportion of the input that is assigned to a product.

The key for cost allocation is f 1 and f 2 :

This results in the specific variable costs k 1 and k 2 :

According to the above introductory cost allocation relationship, the following applies:

Used and formed:

See also

swell