Service cost centres, Cost Accounting

Service Cost Centres

Since no production cost units pass via the service cost centers, it is essential to apportion the service department costs; to the production cost centers so such all production costs involving those for the servicing departments that are absorbed into production.  Typical basis for secondary apportionment that is the apportionment of service costs to production departments are specified below as:

 Service Department

 Possible basis of Apportionment to


 Production Cost Centres


 Maintenance Labour Hours


 Maintenance Wages


 Plant value


 Number of Requisitions


 Weight of Materials issued


 Number of production employees per cost  centre


 Number of Inspection Tickets


 Number of Jobs

 Production Control

 No of Production Employees per cost centre


 No of jobs

 Power General Generation

 Metered Usage


 Notional Capacity


 Technical Estimate

 Personnel Department

 No of Employee per department


Posted Date: 2/5/2013 6:57:57 AM | Location : United States

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