Apportionment of overheads, Cost Accounting

Apportionment of Overheads

Apportionment of overheads occurs whereas the net value of an overhead item is shared among more or two cost centers that employ the overheads. This is significant that an apportionment basis that reflects the benefit extracted via a cost center is employed. For example here, the rates payable to the local authority may be apportioned on the source of area of occupancy of all cost center.

Re-apportionment of overheads happens when service department costs are charged to user departments. As like an example, the maintenance department overhead costs are summarized and after that charged to the user department, that will probably involve other service or non-production departments. Service departments do not participate directly in the manufacturing process however plays a supportive indirect role. Products do not pass via the support departments. It is for this purpose that service department costs have to be reapportioned to the production cost departments or centers.

Posted Date: 2/5/2013 7:04:28 AM | Location : United States







Related Discussions:- Apportionment of overheads, Assignment Help, Ask Question on Apportionment of overheads, Get Answer, Expert's Help, Apportionment of overheads Discussions

Write discussion on Apportionment of overheads
Your posts are moderated
Related Questions
Traditional budgeting  systems are  incremental  in nature and  tend  to  focus on  cost  centres.  Activity-based  budgeting  links  business  planning  to  the  budgeting  proces

It is important to have performance measures to evaluate managers as they control resources and invest in assets for the company. Describe how you could use different variances (ac

A machine originally had an estimated useful life of 5 years, but after 3 complete years, it was decided that the original estimate of useful life should have been 10 years. At tha

Q. Why communities begin using FCA? There are several reasons why communities start by means of FCA. For instance: • To elucidate more evidently MSW costs to people. • It is


Example of Labour Remuneration Beneath a premium bonus scheme, workers obtained a guaranteed basic hourly minimum rate of pay in addition of a bonus of 50 percent of the time

Direct Materials Budget This budget implies the estimated quantities and costs of every the raw materials and components desired for the output demand by the production budget

The difference among "cost accounting" and "financial accounting are terms demote to the accounting techniques used internally by a company's management to explain the costs of run

Overhead Cost Analysis and Classification Overhead costs may be analyzed into a) Which that may be directly identifiable along with a single cost center, as an  example of,

formula for calculting WACC