ASSESSMENT OF COST ALLOCATION PRACTICES IN CASE OF BGI BREWERY MANUFACTURING COMPANIES

Abstract

The purpose of this thesis is to understand how factory allocate overhead cost for each product they produced. This research assesses overhead cost allocation practices in case of St. George brewery factors. It also determines currently used allocation practices, to determine factors of overhead cost allocation system in company and lastly examine allocation system on profitability. The research was conducted with 19 employee’s individuals working in St. George brewery factory in finance, cost and production department using administered questionnaire for 17 workers and interviews with selected two individuals. The researcher conducted descriptive case study for this research and also the results show that the firm overhead allocation system has obtain results indicate that company overhead cost allocation system use traditional allocation system, there are factor that affect allocation system and profitability. The research result shows that the firm employees have no get training in cost allocation mechanism, and company cannot identify overhead production cost for each production types, employee have no satisfied by firm it also affect employees performance it also affect companies profitability.