whats different in absorbtion allocation and apportionment and reapportioment in context of overhead costing???????????pls help to explain this topic
Bonita
(trainee)
(218 Points)
Replied 06 August 2009
re:
whats different in absorbtion allocation and apportionment and reapportioment in context of overhead costing???????????pls help to explain this topic
under OH are all the indirect cost that can not be directly identified with the cost unit. so the total cost is absorbed by the units at a predetermined rate. This predetermined rate is total overheads cost divided by the normal capacity . Now this predetermined rate is multiplied by the actual units . the difference is either underabsorption or over absorption.(actual-total fixed oh).
allocating is like identifying the cost withits respective department..
apportionment is like distributing the oh cost on some suitable basis to all the departments
reapportionment is like redistributing the total cost of all the service dept to the production dept...on the basis mentioned...
Dipak Kumar
(CA Final Student)
(44 Points)
Replied 06 August 2009
| Originally posted by :parth | ||
| " | whats different in absorbtion allocation and apportionment and reapportioment in context of overhead costing???????????pls help to explain this topic | " |
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