State the basis of allocation of the following expenses in departmental accounting.
Depreciation on machinery.
Commission
Lighting charges.
Carriage inwards.
Employee’s insurance premium.
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Employee’s insurance premium.
These are allocated among different departments in the proportion of a sound basis to which that particular expenditure is directly related. ... BUILDING REPAIR, RENTS AND TAXES, BUILDING INSURANCE ETC.: All the expenses related to the building should be divided according to the floor space occupied by each department.
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