Question

Distinguish between w allocation apportionment and absorption of overheads

Answer 1

In contrast, cost apportionment involves the proportionate distribution of cost to different departments, on a reasonable basis. Cost allocation is applied when the overhead is associated with a particular department. As against this, cost apportionment is applied when the overhead is related to various departments.

Answer 2

Explanation:

➡️ The Cost Allocation, Apportionment and Absorption of Overheads.It is the charging of discrete, identifiable items of cost to cost centres or cost units. • It is complete distribution of an item of overhead to the departments or products on logical or equitable basis is called allocation.