Allocation of overhead costs, Cost Accounting

Allocation of Overhead Costs

Allocation of overheads is the term utilized where the overhead cost item can be charged to a exact cost center without the requirement for any estimation procedure. As an example here,

A. The salary of the engineer in charge of power generation will be charged to power generating cost center,

B. The salary of the sales manager will be allocated to the selling overhead cost center.

Posted Date: 2/5/2013 7:02:32 AM | Location : United States

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