{"id":3342,"date":"2020-02-16T07:34:25","date_gmt":"2020-02-16T07:34:25","guid":{"rendered":"https:\/\/commerceiets.com\/?p=3342"},"modified":"2020-02-16T07:34:25","modified_gmt":"2020-02-16T07:34:25","slug":"allocation-and-apportionment-of-overheads","status":"publish","type":"post","link":"https:\/\/commerceiets.com\/allocation-and-apportionment-of-overheads\/","title":{"rendered":"ALLOCATION AND APPORTIONMENT OF OVERHEADS"},"content":{"rendered":"\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/commerceiets.com\/allocation-and-apportionment-of-overheads\/#Allocation_and_Apportionment_of_overheads_is_also_known_as_departmentalization_of_overheads\" title=\"Allocation and Apportionment of overheads is also known as departmentalization of overheads.\">Allocation and Apportionment of overheads is also known as departmentalization of overheads.<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/commerceiets.com\/allocation-and-apportionment-of-overheads\/#ALLOCATION_OF_OVERHEADS\" title=\"ALLOCATION OF OVERHEADS\">ALLOCATION OF OVERHEADS<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/commerceiets.com\/allocation-and-apportionment-of-overheads\/#APPORTIONMENT_OF_OVERHEADS\" title=\"APPORTIONMENT OF OVERHEADS\">APPORTIONMENT OF OVERHEADS<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/commerceiets.com\/allocation-and-apportionment-of-overheads\/#ACCOUNTING_OF_ALLOCATION_AND_APPORTIONMENT_OF_OVERHEADS\" title=\"ACCOUNTING OF ALLOCATION AND APPORTIONMENT OF OVERHEADS\">ACCOUNTING OF ALLOCATION AND APPORTIONMENT OF OVERHEADS<\/a><\/li><\/ul><\/nav><\/div>\n<h4 class=\"wp-block-heading\" id=\"allocation-and-apportionment-of-overheads-is-also-known-as-departmentalization-of-overheads\"><span class=\"ez-toc-section\" id=\"Allocation_and_Apportionment_of_overheads_is_also_known_as_departmentalization_of_overheads\"><\/span>Allocation and Apportionment of overheads is also known as departmentalization of overheads.<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<h3 class=\"has-text-align-center wp-block-heading\" id=\"allocation-of-overheads\"><span class=\"ez-toc-section\" id=\"ALLOCATION_OF_OVERHEADS\"><\/span><strong>ALLOCATION OF OVERHEADS<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Allocation is the process of identification of overheads with cost centers. An expense which is directly identifiable with a specific cost centre is allocated to that centre. Thus it is allotment of a whole item of cost to a cost centre or cost unit. <\/p>\n\n\n\n<p><strong>ACCORDING TO\nCHARTERED INSTITUTE OF MANAGEMENT ACCOUNTANTS, LONDON <\/strong><\/p>\n\n\n\n<p>\u201cCost Allocation is the charging of discrete, identifiable\nitems of cost to cost centres or cost units\u201d.<\/p>\n\n\n\n<p><strong>EXAMPLE<\/strong><\/p>\n\n\n\n<p>The total overtime wages of workers of a department should\nbe charged to that department. The electricity charges of a department if separate\nmeters are there should be charged to that particular department only.<\/p>\n\n\n\n<h3 class=\"has-text-align-center wp-block-heading\" id=\"apportionment-of-overheads\"><span class=\"ez-toc-section\" id=\"APPORTIONMENT_OF_OVERHEADS\"><\/span><strong>APPORTIONMENT OF OVERHEADS<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Cost apportionment is the allotment of proportions of cost\nto cost centers or cost units. If a cost is incurred for two or more divisions\nor departments then it is to be apportioned to the different departments on the\nbasis of benefit received by them. Apportionment is done in case of those\noverhead items which cannot be wholly allocated to a particular department.\nCommon items of overheads are rent and rates, depreciation, repairs and maintenance,\nlighting, works manager\u2019s salary etc.<\/p>\n\n\n\n<p><strong>ACCORDING TO\nCHARTERED INSTITUTE OF MANAGEMENT ACCOUNTANTS, LONDON <\/strong><\/p>\n\n\n\n<p>\u201cApportionment of overheads is that part of cost attribution\nwhich shares costs among two or more cost centers or cost units in proportion\nto the estimated benefit received, using a proxy\u201d.<\/p>\n\n\n\n<p><strong>EXAMPLE<\/strong><\/p>\n\n\n\n<p>The salary paid to the works manager of the factory, factory\nrent, general manager\u2019s salary etc. cannot be charged wholly to a particular\ndepartment or cost centre, but will have to be charged to all departments or\ncost centers on an equitable basis.<\/p>\n\n\n\n<p><strong>Principles of\nApportionment of Overhead Cost<\/strong><\/p>\n\n\n\n<p>The following are the principles of apportionment of\noverhead costs:<\/p>\n\n\n\n<p><strong>(i) Services Rendered<\/strong><\/p>\n\n\n\n<p>The principle followed in this method is quite simple. A\nproduction department which receives maximum services from service departments\nshould be charged with the largest share of the overheads. Accordingly, the\noverheads of service departments are charged to the production departments.<\/p>\n\n\n\n<p><strong>(ii) Ability to Pay<\/strong><\/p>\n\n\n\n<p>This method suggests that a large share of service\ndepartment\u2019s overhead costs should be assigned to those producing departments\nwhose product contributes the most to the income of the business firm. However\nthe practical difficulty in this method is that, it is difficult to decide the\nmost paying department and hence difficult to operate.<\/p>\n\n\n\n<p><strong>(iii) Survey or\nAnalysis Method<\/strong><\/p>\n\n\n\n<p>This method is used where a suitable base is difficult to\nfind or it would be too costly to select a method which is considered suitable.\nFor example, the postage cost could be apportioned on a survey of postage used\nduring a year.<\/p>\n\n\n\n<p><strong>(iv) Efficiency\nMethod<\/strong><\/p>\n\n\n\n<p>Under this method, the apportionment of expenses is made on\nthe basis of production targets. If the target is exceeded, the unit cost\nreduces indicating a more than average efficiency. If the target is not\nachieved, the unit cost goes up, disclosing there by, the inefficiency of the\ndepartment.<\/p>\n\n\n\n<h3 class=\"has-text-align-center wp-block-heading\" id=\"accounting-of-allocation-and-apportionment-of-overheads\"><span class=\"ez-toc-section\" id=\"ACCOUNTING_OF_ALLOCATION_AND_APPORTIONMENT_OF_OVERHEADS\"><\/span><strong>ACCOUNTING OF ALLOCATION AND APPORTIONMENT OF OVERHEADS<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>There are two methods of allocation and apportionment of\noverheads i.e. Primary Distribution and Secondary Distribution.<\/p>\n\n\n\n<p class=\"has-pale-cyan-blue-background-color has-background\"><strong>1. PRIMARY\nDISTRIBUTION OF OVERHEADS <\/strong><\/p>\n\n\n\n<p>Primary distribution of overhead involves allocation or\napportionment of different items of overhead to all departments of a factory.\nThis is also known as departmentalization of overheads. While making primary distribution\nthe distinction between production departments and service departments\ndisregarded since it is of little use. The distribution of different items of\noverhead in different departments is attempted on some logical and reasonable\nbasis. <\/p>\n\n\n\n<p><strong>Basis of apportioning\noverhead expenses:<\/strong> It is stated that the total overhead expenses of a\ndepartment comprises direct overhead expenses incurred in the departments\nitself as well as the apportioned overhead expenses of other service\ndepartments. Expenses directly incurred in the departments which are jointly incurred\nfor several departments have also to be apportioned e.g. expenses on rent,\npower, lighting, insurance etc. In other words, common expenses have to be\napportioned or distributed over the departments on some equitable basis. The\nfollowing basis is most commonly used for apportioning items of overhead expenses\namong production and service departments. <\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td>\n  <strong>Basis<\/strong>\n  <\/td><td>\n  <strong>Items of Overheads <\/strong>\n  <\/td><\/tr><tr><td>\n  1. Floor area\n  <\/td><td>\n  Rent, rates and taxes paid for the building, air\n  conditioning, etc.\n  <\/td><\/tr><tr><td>\n  2. No. of employees or wages of each\n  Department\n  <\/td><td>\n  Group insurance, canteen expenses, E.S.I.\n  contribution, general welfare expenses, compensation\n  and other fringe benefits, supervisions etc.\n  <\/td><\/tr><tr><td>\n  3. Capital values\n  <\/td><td>\n  Insurance and depreciation of plants, machinery and equipments.\n  <\/td><\/tr><tr><td>\n  4. Direct labour hours\n  <\/td><td>\n  Works manager\u2019s remuneration, general overtime\n  expenses, cost of inter-department transfers etc.\n  <\/td><\/tr><tr><td>\n  5. No. of light points\n  <\/td><td>\n  Electric light\n  <\/td><\/tr><tr><td>\n  6. Horse power of machines or machine hours\n  <\/td><td>\n  Electric power\n  <\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"has-pale-cyan-blue-background-color has-background\"><strong>2. RE-APPORTIONMENT\nOF SERVICE DEPARTMENT OVERHEADS (SECONDARY DISTRIBUTION) <\/strong><\/p>\n\n\n\n<p>Normally products do not pass through service departments,\nbut service departments do benefit the manufacture of products. Therefore, it\nis logical that product cost should bear and equitable share of the cost of\nservice departments. The process of redistribution of the cost of service\ndepartments among the production departments is known as secondary distribution.\n<\/p>\n\n\n\n<p><strong>Criteria for\nsecondary distribution <\/strong><\/p>\n\n\n\n<p><strong>&nbsp;(i) Service or use method:<\/strong> Under this\nmethod overheads are distributed over various production departments on the\nbasis of service received. The greater is the amount of service received by a production\ndepartment, the greater should be the share to be apportioned to that\ndepartment. This criterion has greatest applicability in cases where overhead\ncosts can be easily and directly traced to departments receiving the benefits.\nSince this method is based upon the extent of the benefit received by a\ndepartment, the expenses are equitably apportioned. This method is considered\nto be fair as it takes into account the time element and consistent results. <\/p>\n\n\n\n<p><strong>(ii) Analysis or\nsurvey:<\/strong> In certain cases it may not be possible to measure exactly the\nextent of benefit which the various departments receive as this may vary from\nperiod to period. Therefore, overheads are apportioned on the basis of analysis\nand survey of existing conditions. This basis of apportionment includes\narbitrary elements. <\/p>\n\n\n\n<p><strong>(iii) Ability to pay:<\/strong>\nThis method presumes that higher the revenue of a production department, higher\nshould be the proportionate charge for services. This method is simple to apply\nbut it is generally considered inequitable because it penalizes the efficient\nand profitable units of a business to the advantage of the inefficient ones. <\/p>\n\n\n\n<p><strong>(iv)Efficiency or\nincentive method:<\/strong> This basis facilitates scientific distribution of service\ndepartment cost to production departments. Under this method the apportionment\nof expenses is made on the basis of production targets. If the target is\nexceeded the unit cost reduces indicating a more than average efficiency.\nOpposite is the effect if the assumed levels are not reached. Thus, the department\nwhose sales are increasing is able to show a greater profit and thereby is able\nto earn greater goodwill and appreciation of the management. <\/p>\n\n\n\n<p><strong>(v) General use of\nindices:<\/strong> If data relating to actual services rendered cannot be obtained in\nsome situations this method is adopted. The index selected is closely related\nto assured flow of service department cost to production departments. For\ninstance, the service of cost accounting department can be apportioned to\nproduction departments on the basis of number of employees in each department. <\/p>\n\n\n\n<p>Following is a list of basis, which are frequently used for\napportionment of cost of service departments among production departments: <\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td>\n  <strong>Service department costs<\/strong>\n  <\/td><td>\n  <strong>Basis of apportionment <\/strong>\n  <\/td><\/tr><tr><td>\n  1. Maintenance department\n  <\/td><td>\n  Hours worked for each department.\n  <\/td><\/tr><tr><td>\n  2. Employment\/personnel department\n  <\/td><td>\n  Rate of labor turnover or number of employees in each department.\n  <\/td><\/tr><tr><td>\n  3. Payroll or time department\n  <\/td><td>\n  Direct labor hours, machine hour\u2019s number of employees.\n  <\/td><\/tr><tr><td>\n  4. Stores keeping department\n  <\/td><td>\n  No. of requisitions, quantity or value of materials.\n  <\/td><\/tr><tr><td>\n  5. Welfare department\n  <\/td><td>\n  No. of employees in each department.\n  <\/td><\/tr><tr><td>\n  6. Internal transport service\n  <\/td><td>\n  Truck hours, truck mileage or tonnage.\n  <\/td><\/tr><tr><td>\n  7. Building service department\n  <\/td><td>\n  Relative area of each department.\n  <\/td><\/tr><tr><td>\n  8. Power house\n  <\/td><td>\n  Floor area, cubic contents.\n  &nbsp;\n  <\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><strong>Methods of\nRe-apportionment or Re-distribution <\/strong><\/p>\n\n\n\n<p>At first expenses of all departments are compiled without\nmaking a distinction between production and service departments but, then, the\nexpenses of the service departments are apportioned among the production\ndepartments on a suitable basis. It is also possible that expenses of one\nservice department may also be apportioned in part to another service\ndepartment to arrive at the total expenses incurred on the latter department,\nwhich will then be distributed among production department. <\/p>\n\n\n\n<p>Following are the methods of re-distribution of service\ndepartment costs to production departments: <\/p>\n\n\n\n<p><strong>(i) Direct\ndistribution method: <\/strong>Under this method, the cost of service department are\ndirectly apportioned to production departments, without taking into consideration\nany service from one service departments to another service department. <\/p>\n\n\n\n<p><strong>(ii) Step method:<\/strong>\nIn this method the cost of most serviceable department is first, apportioned to\nother service departments and production departments. The next service department\nis taken up and its cost is apportioned and this process is going on till the\ncost of last service department is apportioned. The cost of last service\ndepartment is apportioned among production departments only. <\/p>\n\n\n\n<p><strong>(iii) Reciprocal\nservice method:<\/strong> This method gives cognizance to the fact that where there\nare two or more service departments, they may render service to each other and\ntherefore these inter-departmental services are to be given\ndue weight in distributing the expenses of service departments. There\nare three methods available for dealing with inter service department transfer:\n<\/p>\n\n\n\n<p><strong>(a) Simultaneous\nequation method:<\/strong> Under this method, the true cost of service departments are\nascertained first with the help of simultaneous equations. These are then\ndistributed among the production departments on the basis of given percentages.\n<\/p>\n\n\n\n<p><strong>(b) Repeated\ndistribution method: <\/strong>According to this method service department costs are apportioned\nover other departments, production as well as service according to the agreed percentages\nand this process is repeated until the total costs of the service departments\nare exhausted or the figures become too small to be considered for further\napportionment. <\/p>\n\n\n\n<p><strong>(c) Trial and error method: <\/strong>In this method the cost of one service department is apportioned to another service department. The cost of another service department plus the share received from the first service department is again apportioned to first service department and this process is continued until the balancing figure becomes nil. For instance, suppose there are two service departments \u2018x\u2019 and \u2018y\u2019. These service departments render service to each other. Cost of service department \u2018x\u2019 will be distributed to service department \u2018y\u2019. Again cost of service department \u2018y\u2019 plus the share from service department \u2018x\u2019 will be apportioned to \u2018x\u2019. The amount so apportioned to \u2018x\u2019 will continue to be repeated till amount involved becomes negligible. <\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Also Study<\/strong><\/td><td><strong>Also Study<\/strong><\/td><td><strong>Also Study<\/strong><\/td><td><strong>Also Study<\/strong><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/cost-accounting\/\">Cost Accounting<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/scope-of-cost-accounting-pdf\/\">Scope of cost accounting<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/elements-of-cost\/\">Elements of cost<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/types-of-cost\/\">Types of cost<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/material-control-in-cost-accounting-pdf\/\">Material control<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/perpetual-inventory-system\/\">Perpetual inventory system<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/pricing-of-materials\/\">Pricing of materials<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/bin-card\/\">Bin Card<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/store-ledger\/\">Stores Ledger<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/incentive-plans\/\">Incentive plans<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/overhead\/\">Overheads<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/accounting-treatment-of-idle-time\/\">Idle time<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/system-of-wage-payment-in-cost-accounting\/\">System of wage payment in cost accounting<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-time-rate-system-and-piece-rate-system\/\">Time rate vs piece rate wage system<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/cost-centre\/\">Cost Center<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/labor-turnover\/\">Labour Turnover<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/difference-between-management-accounting-and-cost-accounting\/\">Difference between management accounting and cost accounting<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/allocation-and-apportionment-of-overheads\/\">Allocation and apportionment of overheads<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-allocation-and-apportionment-of-overheads\/\">Allocation vs Apportionment of overheads<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/absorption-of-overheads\/\">Absorption of overheads<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/over-absorption-and-under-absorption-of-overheads\/\">Over absorption and under absorption of overheads<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/activity-based-costing\/\">Activity based costing<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-traditional-costing-and-activity-based-costing\/\">Traditional costing vs ABC system<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/reconciliation-of-accounts\/\">Reconciliation of accounts<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/unit-costing\/\">Unit costing<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/cost-sheet-format\/\">Cost sheet format<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/cost-sheet-vs-production-account\/\">Cost sheet vs production sheet<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/job-costing\/\">Job costing<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/batch-costing\/\">Batch Costing<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-job-costing-and-batch-costing\/\">job costing vs batch costing<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/contract-costing\/\">Contract costing<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-job-costing-and-contract-costing\/\">Job Costing vs Contract costing<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/process-costing\/\">Process Costing<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/process-costing-vs-job-costing\/\">Process costing vs job costing<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/joint-products\/\">Joint products<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/by-products\/\">By Product&nbsp;<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/equivalent-production\/\">Equivalent production<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/marginal-costing\/\">Marginal costing<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/applications-of-marginal-costing\/\">Application of marginal costing<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/cost-volume-profit-analysis\/\">Cost volume profit analysis<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/tools-and-techniques-of-marginal-costing\/\">Tools and techniques of marginal costing<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/budget\/\">Budget<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/break-even-point\/\">Break even point<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/process-of-budgetary-control\/\">Process of budgetary control<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/explain-the-advantages-and-limitations-of-budgetary-control\/\">Advantages and limitations of budgetary control<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/budgetary-control\/\">Budgetary Control<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/zero-base-budgeting\/\">Zero base budgeting<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/standard-costing\/\">Standard Costing<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/variance-analysis\/\">Variance Analysis<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-standard-costing-and-budgetary-control\/\">Standard costing vs budgetary control<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-management-accounting-and-cost-accounting\/\">Management accounting vs cost accounting<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-financial-accounting-management-accounting-and-cost-accounting\/\">Cost accounting vs financial accounting<\/a><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link\" href=\"https:\/\/www.linkedin.com\/in\/kajal-mahajan-7549b2197\/\" target=\"_blank\" rel=\"noreferrer noopener\">CONNECT ON LINKEDIN<\/a><\/div>\n<\/div>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"512\" height=\"152\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/04\/cropped-cropped-Presentation-resize-1.jpg\" alt=\"Difference between Financial Accounting Management Accounting and Cost accounting\" class=\"wp-image-4836\" srcset=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/04\/cropped-cropped-Presentation-resize-1.jpg 512w, https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/04\/cropped-cropped-Presentation-resize-1-300x89.jpg 300w\" sizes=\"(max-width: 512px) 100vw, 512px\" \/><figcaption>ALLOCATION AND APPORTIONMENT OF OVERHEADS<\/figcaption><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>Allocation and Apportionment of overheads is also known as departmentalization of overheads. ALLOCATION OF OVERHEADS Allocation is the process of identification of overheads with cost centers. An expense which is directly identifiable with a specific cost centre is allocated to that centre. Thus it is allotment of a whole item of cost to a cost&#8230;<\/p>\n<p class=\"more-link-wrap\"><a href=\"https:\/\/commerceiets.com\/allocation-and-apportionment-of-overheads\/\" class=\"more-link\">Read More<span class=\"screen-reader-text\"> &ldquo;ALLOCATION AND APPORTIONMENT OF OVERHEADS&rdquo;<\/span> &raquo;<\/a><\/p>\n","protected":false},"author":2,"featured_media":3343,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[187],"tags":[],"_links":{"self":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts\/3342"}],"collection":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/comments?post=3342"}],"version-history":[{"count":0,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts\/3342\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/media\/3343"}],"wp:attachment":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/media?parent=3342"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/categories?post=3342"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/tags?post=3342"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}