The calculation methods is used to determine if the overheads are calculated either by cascade or as a total.
For example:
The overhead OH1 corresponding to following natures NAT1 (5%) and NAT2 (15%)
Product A price: 100 Eur
A | NAT1 calculation | NAT2 calculation | Valuation of A |
100 | 100x5%= 5 | 100x15%=15 | 120 |
Cost calculation : 100 + 100x0.05 + 100x0.15 = 120 Eur
Cost calculation : 100+ (100 + 100x0.05)x0.15 = 120.75
A | Nat1 5% | Valuation after application of NAT1 | NAT2 15% | Valuation of A |
100 | 100x5% | 105 | 105x15%=15.75 | 120.75 |