Refined costing system

Refined costing system is costing system that reduces the use of broad averages for assigning the cost of resources to cost objects (jobs, products, services) and provides better measurement of the costs of indirect resources used by different cost objects—no matter how differently various cost objects use indirect resources.

Definitions

According to Cost Accounting by Horngren, Datar, Rajan (14th edition),

Refined costing system. Costing system that reduces the use of broad averages for assigning the cost of resources to cost objects (jobs, products, services) and provides better measurement of the costs of indirect resources used by different cost objects—no matter how differently various cost objects use indirect resources.