Service cost centres, Cost Accounting

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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

 Maintenance Labour Hours

 

 Maintenance Wages

 

 Plant value

 Stores

 Number of Requisitions

 

 Weight of Materials issued

 Inspection

 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

 


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