Cost apportioning
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
23 January 2014
Hi,
I have a situation as below and need to apportion the overhead costs.
The question is, I have four service intangible products and I have to apportion the Overheads to each of the four products. The type of service and its nature is not similar to each other.
How do I apportion the overhead costs to these products.
Appreciate if anybody can help.
Thank you.
I have a situation as below and need to apportion the overhead costs.
The question is, I have four service intangible products and I have to apportion the Overheads to each of the four products. The type of service and its nature is not similar to each other.
How do I apportion the overhead costs to these products.
Appreciate if anybody can help.
Thank you.
23 January 2014
OHs can be apportioned in a variety of ways depending on the product / service. Some of the bases are:
- Value of the service
- Cost of the service
- Direct labour hours of service
- Direct + indirect labour hours of service etc.
There is no hard and fast rule and it has to be decided on case to case base in a logical way.
Ofcourse, you need to do primary apportionment / allocation and secondary apportionment / allocation.
Thanks!
- Value of the service
- Cost of the service
- Direct labour hours of service
- Direct + indirect labour hours of service etc.
There is no hard and fast rule and it has to be decided on case to case base in a logical way.
Ofcourse, you need to do primary apportionment / allocation and secondary apportionment / allocation.
Thanks!
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