Definicja cost rollup

A process in material costing in which costs at lower production levels are allocated to the highest level.

Costs are rolled up by cost component, assuring that the origin of the costs remains visible after rollup. For example, labor costs in preassembly are rolled up into the cost of goods manufactured of the end product as internal labor costs rather than material costs.

Any costs assigned to cost components that are not rolled up are not included in cost estimates of higher costing levels.