Question

Air conditioning is allocated to each department on the basis of​

Answer 1

Explanation:

The basis on which depreciation is calculated and allocated/ apportioned to the various cost centres / departments and absorbed on all products shall be clearly indicated in the cost .

Answer 2

Answer:

Expenses for air-conditioning and heating may be apportioned on the basis of area occupied or on the basis of cubic capacity of the department concerned.

Explanation:

Normally, all direct expenses are charged to the respective departments, in case of indirect or general expenses, proper allocation among the departments must be made in order to ascertain the profit and loss made by each department. Each department is charged with proper business expenses.