Important aspect regarding to service cost centres, Cost Accounting

Important Aspect Regarding to Service Cost Centres

The basis selected should be one that is judged to be the mainly equitable way of sharing the service costs of department over the departments that use the service. Because that a particular and unique basis of apportionment may have to be derived.  This must reflect the employ made of the services provided.

Where possible, service department costs must be charged directly that is allocated.  As an example for, this would be maintenance wages and materials.  While a maintenance job is done for a department, the materials and wages employed would be charged directly to the department concerned.  In this way merely unallocated service department costs require to be apportioned.

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