What term is used to describe the process of charging service cost centre overheads to the various production cost centres?
A: Absorption
B: Apportionment
C: Allocation
D: Re-apportionment
A: Absorption
B: Apportionment
C: Allocation
D: Re-apportionment
举一反三
- 中国大学MOOC: The process of cost apportionment is carried out so that:
- What is the base of selling price A: the cost of production B: a percentage of total cost C: the cost of transportation D: the cost of storage.
- The costs of service department A and service department B need to be reapportioned to the two Production departments using the direct method. The total overhead costs of each department are as follows:Service department A is to be reapportioned to the production centres on the basis of number of employees. Service department B is to be reapportioned on the basis of machine hours.What is the total overhead cost of Production 1 after the reapportionment?<br/>______
- A process costing system is employed in those situations where: A: many different products, jobs, or batches of production are being produced each period. B: where manufacturing involves a single, homogeneous product that flows evenly through the production process on a continuous basis. C: a service is performed such as in a law firm or an accounting firm. D: full or absorption cost approach is not employed.
- What is the most appropriate production overhead absorption rate for department 2? A: 50% of direct material cost B: 18% of direct labour cost C: $0.72 per direct labour hour D: $60 per machine hour