Indirect cost allocation

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Abhishek (Querist)
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21 January 2014 Hi All,

Can anyone help me on the indirect cost allocation with taking all expense components into consideration?

Regards
Abhishek

P V Ram

P V Ram (Expert)
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21 January 2014 indirect cost are allocated / apportioned to all cost centres including service cost centres on appropriate basis and then totals of service cost centers are apportioned to production cost centers through secondary distribution.

Finally total costs of production cost centers are absorbed by products.

Thanks!