Allocation apportionment and absorption are steps followed with respec

1.	Allocation apportionment and absorption are steps followed with respect to
Answer» Allocation APPORTIONMENT and absorption are steps followed with respect to overheads. Overheads are normal expenses incurred for some departments or cost units. Specific items can be directly RECOGNISED to specific departments. The process of CHARGING such items to particular department is called allocation. There are certain overheads common to few departments. Distribution of these overheads among various departments equally is called appointment. The process of charging OVERHEAD of one cost centre to different cost centre is called absorption.

Allocation apportionment and absorption are steps followed with respect to

Answer»

Allocation APPORTIONMENT and absorption are steps followed with respect to overheads.

Overheads are normal expenses incurred for some departments or cost units.

Specific items can be directly RECOGNISED to specific departments.

The process of CHARGING such items to particular department is called allocation.

There are certain overheads common to few departments.

Distribution of these overheads among various departments equally is called appointment.

The process of charging OVERHEAD of one cost centre to different cost centre is called absorption.