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(Querist)
01 July 2015 Why is apportioned cost not considered in Capital Budgeting decisions?
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CA. Sunil Gokhale

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CA. Sunil Gokhale (Expert)
02 July 2015 In computation of cash flows we take only the actual cash inflow or outflow. If an expense has already been incurred but is now only being apportioned to the project then there is no additional cash outflow for the project. It is just the share of expense being charged to the project. As it does not involve a cash outflow it is not taken.
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