Allocation of expenses

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PREMNATH (Querist)
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11 October 2012 Sir

I am working in a BPO cum software company.We are having different processes which are done by a group of persons. I want to ascertain the profitability for each process. We receive funds from clients individually for different processes. How can I allocate the fixed costs like rent, electricity,etc

Purushottam

Purushottam (Expert)
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14 October 2012 Activity Based costing is to be used for this purpose... e.g you can maintain hourly working sheet of employees to gather the data of hours worked for particular process.