Implementation of re-apportionment of overheads, Cost Accounting

Implementation of Re-Apportionment of Overheads

The re-apportionment of service department costs may be implemented in a number of methods.

The Two extremes are as

a) Where costs of each service department are only charged to production centers administration; distribution and selling centers are not charged along with the cost of the service departments are they not production centres.  This is referred to like the Direct Method

Where the reciprocal nature of service costs is totally recognized; which is service departments serve each other. This type of approach may be implemented utilizing two methods as:

i. The repeated distribution method

ii. Utilizing an algebraic approach

b) A compromise method or elimination method may be utilized where with the costs of each service cost centers are reapportioned in turn. The costs of the first service center will be re-apportioned to each user centers involving other service centers. However the first service center is then removed from any further reapportionment. The cost of the second service center involving any costs already reapportioned from the first service center are after that reapportioned to all user centers other than the first service center. The process is continued till all service centers are removed.

Posted Date: 2/5/2013 7:07:03 AM | Location : United States







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

Write discussion on Implementation of re-apportionment of overheads
Your posts are moderated
Related Questions
Financial Accounting It is the analysis, and recording and classification of financial transactions and the ascertainment of how that information will be reported to the diffe

what are the legal distinctions between a business combination, a merger, and a consolidation.


a company has the budget for manufacturing overhead based on direct labor hours. budgeting at 10,000 direct labor hours are as follows. Variable costs= 160000 Fixed Costs

Generally Accepted Accounting Principles (GAAP) -Rules, conventions and procedures essential to define accepted accounting practice at a specific time. The highest level of such pr

With the introduction of computer-generated animated films (CGI), there has been much discussion of the impact on the movie industry. For example, illustrators need to have differe

ABC bond is a 20-year bond with face value $1000. The coupon payment is $25 per 6 months. The semi-annual yield is 4%. Use the PV function in Excel (or equivalent) to Önd the price

Kenner company produces two products: SR200 and TX500. Budged sales for four months are as follows; SR200 TX500 May 8,000 20,000 June 13,000 32,000 July 11,000 39,000 August 18,000

Bentley Plastics Ltd. Has annual fixed cost of $450,000, variable costs of $15 per unit and a contribution rate of 40% a.    What annual revenue is required to break even? b.

Marginal analysis finds to equalize the cost of producing one more item (marginal costs) with the revenue gained from selling one more item (marginal revenue).