The process of cost assignment in a local railway company providing passenger transportation services. A case study
The process of cost assignment in a local railway company providing passenger transportation services. A case study

Summary/Abstract: The aim of this article is to present the process of cost assignment in a local railway company providing passenger transportation services. The undertaken research is of an explorative and descriptive nature. A case study and an inductive analysis constitute the assumed research methods. In the later parts of the article, the idea of a cost assignment process is explained, unified terms are proposed and different types of cost assignment processes are identified. Simple allocation (SA), referring to a cost assignment to a singular cost object and complex allocation (CA), for cost assignment to multiple cost objects are indicated. Also, simple reallocation (SR) is pointed out for a situation in which the cost of one object moves to another, as well as complex reallocation (CR), for a situation in which each cost of one object is divided between several objects. On the basis of that, an attempt to describe the cost assignment process on an exemplary enterprise has been made. Cost objects have been identified in the structure of the researched company and an outline of the operating costs assignment process has been presented and described.

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