Question

SANIKA
Question 1
Power is allocated on the basis of each department
No of points in
No of employees in
Floor area of
Horse power of equipments installed in​

Answer 1

Answer:

Lighting charges are allocated on the basis of No. of light paints

Answer 2

Answer:

Expenses relating to direct benefit of a particular department are charged to the department concerned, e.g., cost of special packing materials is charged to the specific department for which it is used. Expenses relating to the benefit of more than one department but capable of precise allocation are charged to the departments concerned accordingly, i.e., on some equitable basis, e.g., Rent—can be charged to the different departments according to floor area occupied.

(c) Expenses relating to the benefit of more than one department not capable of precise allocation are to be allocated on some arbitrary basis, e.g., Managers salary is to be apportioned on the basis of turnover or cost of sales.