Implementation of re-apportionment of overheads, Cost Accounting

Assignment Help:

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.


Related Discussions:- Implementation of re-apportionment of overheads

Prepaid expenses, Expenses paid in previous of their use or consumption is ...

Expenses paid in previous of their use or consumption is termed as prepaid expenses. At the ending of the year, a portion of the payment keeps unconsumed and is treated like an ass

Material costs - cost accumulation, Material Costs - Cost Accumulation ...

Material Costs - Cost Accumulation However 'Materials' refer to the tangible inputs into the procedure of producing useful output.  They might be indirect materials or direct

Operating cost, 1.Assume that Abel business corporation is purchasing new e...

1.Assume that Abel business corporation is purchasing new equipment, for 350,000$ at the beginning of 2014. Assume that Abel business corporation is in the 30% corporate tax bracke

Fund flow statement, An analysis of the fluctuations of current assets and ...

An analysis of the fluctuations of current assets and current liabilities that is working capital describes that how the working capital has decreased or increased. We want to iden

Calculate the put price, Question: Suppose that the stock now sells at ...

Question: Suppose that the stock now sells at $80, and the price will go up by 5% or down by 5% at the end of first six month (t = ½).  Then, the price will either go up by 10%

Cash flows statement, What type of activity could a company engage in to im...

What type of activity could a company engage in to improve their cash flows in their Cash Flows Statement? Is this ethical? Could borrowing money make the cash from operations be

Help, ) Ialani Corp. uses a job order costing system for the yachts it cons...

) Ialani Corp. uses a job order costing system for the yachts it constructs. On September 1, 2010, the company had the following account balance: Raw material inventory 332400 Wo

Business Combinations, what are the legal distinctions between a business c...

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

Estimate total money using marginal and average tax rate, Thomas Crown expe...

Thomas Crown expects to earn the following stream of annual income for the next four years:- $41,000; $45,000; $38,000 and $50,000. Although he has adopted the Pay Yourself First s

Direct and indirect costs, Direct and Indirect costs Recall such direc...

Direct and Indirect costs Recall such direct costs are costs which can be traced particularly to the end product of the production procedure while indirect costs cannot be so

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd