what is the difference between apportionment and allocation of cost between different departments.
i found these difficulties mainly in SERVICE COSTING in final.
Aditya Sharma (finance advisory) (377 Points)
06 March 2012what is the difference between apportionment and allocation of cost between different departments.
i found these difficulties mainly in SERVICE COSTING in final.
RAMESH CHANDRA SHARMA
(munka istentisztelet)
(899 Points)
Replied 06 March 2012
ALLOCATION OF COST: allocation of cost is a process by which cost items are charged directly to the cost center. for example: electricity charges can be allocated to various departments if separate meters are installed, salary of stores clerk can be allocated to stores department etc.
APPORTIONMENT OF COST: now apportionment of cost is a process where u cant easily identify a cost to a particular cost or service center, for example if there is single electricity meter for the all department, then it becomes a little difficult to allocate the exact cost to a cost center, another example rent will have to be apportioned to various departments on the basis of fl oor space.
RAMESH CHANDRA SHARMA
(munka istentisztelet)
(899 Points)
Replied 09 March 2012
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