A lecturer from Collage of Administration and Economics /Kerbala University has published a scientific study for Using Shadow prices and their role in allocating indirect industrial costs
Karbala University Scientific Journal, Volume 6, Issue 4 / Scientific, 2008
Dr. mohammed wafi Abd Eawn

This research aims to applying concept of shadow price as style in allocation of service department costs to operating department.

The research depends on the following hypothesis: –    “Taking the concept of shadow price in allocate  service  department costs to other departments will ensure relevant information that will assist the management in its different levels to make the right decisions and imposing awared control”.

The research is divided into paragraphs deals with the research methodology, concepts of indirect manufacturing costs and cost allocation, concepts of operating department and supporting service department, traditional methods in allocating service department costs to operating department, concept of shadow price, explaining proposed method of allocation using shadow price and its applying in allocation of service department costs to operating department, then examining valid of results that revealed by shadow price method through its comparing with reciprocal allocation method that its best traditional methods  used, and the important conclusions that revealed by the study and giving the suggested recommendations.