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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.
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what is the purpose of cost accounting and its nat ure?
A listed entity, had 3,000,000 $1 ordinary shares in issue, On 1 January 2009 CSA.CSA made a bonus issue of 1 for 3, On 1 May 2009. CSA issued 2,000,000 $1 ordinary shares for $3.2
Total profit means the total revenue excluding the total cost of the certain products. Average profit defines the profit which comes and achieved after selling each unit. Total
The difference among "cost accounting" and "financial accounting are terms demote to the accounting techniques used internally by a company's management to explain the costs of run
costing in respect of mathematical accounting a research project.
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