Question

What is Depart
mental Accounts ? Explain
the basis of allotment of
Indirect
expenses to various
departments.
​

Answer 1

Answer:

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. ... Some expenses cannot be apportioned and no basis of apportionment is practicable.