Apportionment of overheads, Cost Accounting

Assignment Help:

Apportionment of Overheads

Apportionment of overheads occurs whereas the net value of an overhead item is shared among more or two cost centers that employ the overheads. This is significant that an apportionment basis that reflects the benefit extracted via a cost center is employed. For example here, the rates payable to the local authority may be apportioned on the source of area of occupancy of all cost center.

Re-apportionment of overheads happens when service department costs are charged to user departments. As like an example, the maintenance department overhead costs are summarized and after that charged to the user department, that will probably involve other service or non-production departments. Service departments do not participate directly in the manufacturing process however plays a supportive indirect role. Products do not pass via the support departments. It is for this purpose that service department costs have to be reapportioned to the production cost departments or centers.


Related Discussions:- Apportionment of overheads

prepare a simple balance sheet, Assume that Banc One receives a primary de...

Assume that Banc One receives a primary deposit of $1 million. The bank must keep reserves of 20 percent against its deposits. Prepare a simple balance sheet of assets and liabilit

Elements of manufacturing cost, i want some informations about elements of ...

i want some informations about elements of manufacturing cost

Effects of increasing fixed cost, Jones Company operates within a monopolis...

Jones Company operates within a monopolistically competitive industry. The estimated demand for its products is given by the following inverse demand function P = 1760 - 12Q

Contract costing, format of contractee account and an example

format of contractee account and an example

Audit plan, 1. You are required to download the latest annual report publis...

1. You are required to download the latest annual report published by one of the following institutions: - Adult Multicultural Education Services - Centre for Adult Education

Engineering method of cost estimation, Engineering Method of Cost Estimatio...

Engineering Method of Cost Estimation This method is based on a detailed study of each operation whereas careful requirement is made for materials, labour and equipment essent

Absorption costing, Absorption Costing, Marginal Cost and Marginal Costing ...

Absorption Costing, Marginal Cost and Marginal Costing Absorption costing is most often utilized for routine profit reporting and must be utilized for financial accounting rea

Standard costing system, Standard costing System has the following main adv...

Standard costing System has the following main advantages or benefits: 1. The process in itself often discloses inefficiencies, because the setting of standards requires a thoro

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