Please answer my question?

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What are the methods of re-apportionment of service department expenses over the production departments? Discuss.  [asked in IPCE NOV-2010, Q7.(a)].  Send me answer also mention in which chapter of cost account said topic is included.  Thanking you in anticipation. 

Replies (5)

The problem is related with overhead chapter. There are some prescribed methods to reapportioned the service dept. cost.., i hope u'll find ur solution.

Sagar ur question is related to the chapter overhaeds. apportionment of service department expenses to production department is called secondary distribution. there r 3 methods regarding such apportionment. they r direct method in which service dept expenses r directly apportioned to production dept. second one is non reciprocal method.there r 5 internal methods in non reciprocal method. they r step method,step ladder method,step down method,specific order of closing method,seqencial method. in above 5 methods  step down method is mostly used.third one is reciprocal method.in reciprocal there r 3 internal methods. they r trial and error, repeated distribution,simultaneous equation method.in reciprocal method there r only 2 service dept... hopes u understood

ya, agree with mounika..........

overhead

agree with monika


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