Service cost centres, Cost Accounting

Assignment Help:

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

 


Related Discussions:- Service cost centres

What would be the impact on net income, Brandywine Homecare, a not-for-prof...

Brandywine Homecare, a not-for-profit business, had revenues of $12 million in 2011. Expenses other than depreciation totaled 75 percent of revenues, and depreciation expense was $

Rvu methodology, Assume that a primary care physician practice performs onl...

Assume that a primary care physician practice performs only physical examinations.  However, there are three levels of examinations I, II, III - that vary in depth and complexity.

Standards on motivation, ADescribe the impact of different types of standar...

ADescribe the impact of different types of standards on motivations, and specifically, the likely effect on motivation of adopting the labor standard recommended for Geeta & Compan

What is the free cash flow for master designs, Master Designs Company has c...

Master Designs Company has cash flows for operating activities of $350,000. Cash flows used for investments in property, plant, and equipment totaled $65,000, of which 70% of this

Computerized packages, types of computerized packages .its cost .features s...

types of computerized packages .its cost .features size of the business is intended to service

Finance and logistics, responsibility of director of finance and logistics

responsibility of director of finance and logistics

Cost-plus pricing, Computation of mark up and Target selling price in cost-...

Computation of mark up and Target selling price in cost-minus pricin

Overhead anaylysis, the annual overhead costs for abc ltd which has 3 produ...

the annual overhead costs for abc ltd which has 3 production centeres and 2 service centers are as follows. indirect wages & supervision X 2million Y 2million 3 production departme

Cost account ledger system, Cost Account Ledger System A cost account ...

Cost Account Ledger System A cost account ledger system is essential to analyze accounting information in order such costs may be accumulated for individual cost centers and c

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