ALLOCATION & APPORTIONMENT OF OVERHEADS. By: - Onkar Sule Roll No : - 54. Overheads. Indirect costs which cannot be easily allocated to any specific Job or Process because they are not capable of being identified with any specific Job or Process. Also called as Operating cost.
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ALLOCATION & APPORTIONMENT OF OVERHEADS By: - Onkar Sule Roll No : - 54
Overheads Indirect costs which cannot be easily allocated to any specific Job or Process because they are not capable of being identified with any specific Job or Process. Also called as Operating cost. Operating Cost = Cost of goods sold + Operating Expenses
OVERHEAD • Few more names • Overhead expenses • Overhead Cost • Overhead Charges • Overhead expenditure • On cost • Supplementary costs • Non-productive costs • Burden Costs • Loading Costs • Indirect Cost
Allocation and Apportionment of Overhead Process by which cost items are charged direct to a cost unit or cost centre. It is the process of charging the traceable amount of overhead to cost centre or cost unit. Overhead costs by their nature cannot often be related to one particular cost centre. Apportionment is the division of costs among two or more cost centers in proportion to the estimated benefits received, using some logical basis.
Distribution of Overhead APPORTIONMENT Common costs are apportioned Amongst different departments or cost centers on some basis Common Costs