mounika
(semi qualified chartered accountant)
(981 Points)
Replied 14 July 2011
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