Question

write a short note on apportionment of expenses among various departments ?​

Answer 1

Appointment of expenses among various departments -

There are certain overhead expenses which cannot be charged totally to a specific department or shop, Such expenses are apportioned in a suitable ratio over related departments or shops. Apportionment means distributing of overhead items to cost centers on a fair and reasonable basis.

Thus the principle is that if an overhead cannot be wholly allocated to a particular cost center, it must be apportioned over related cost centers. This involves finding out some suitable basis of apportionment that will enable the overhead to be equitably shared amongst concerned cost centers.

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