Apportionment

Question	Answer
ALLOCATE	COSTS LINKED WITH A SPECIFIC COST CENTRE
APPORTION	THE SHARING OUT OF COSTS TO DIFFERENT COST CENTRES
RE-APPORTIONED	CHANGING THE WAY COSTS ARE SHARED OUT TO ABSORB COSTS INTO PRODUCTION i.e. admin could be re-apportioned between Assembly and Finishing based on a % of use.
ABSORB	WHEN A COST IS ASSIGNED TO A PRODUCT UNIT SO THAT IT’S IDENTITY BECOMES LOST. e.g. Admin being re-apportioned to Manufacturing and Maintenance
Apportionment of Overheads Card 1	Work out the % or Fraction of ‘Apportionment’ for each cost centre based on last year’s figures: Last year’s Centre Allocation ------------------------------------------ Total of Last Year Total Allocation e.g. Machinery Power Allocation for Moulding Moulding Machinery Power ---------------------------------------- Total Machinery Power
Apportionment of Overheads Card 2	Decide which overheads fit into each cost centre and input this into the basis of apportionment column on the table. Use figures given for the current year, and the % or Fraction worked out from last year (Apportionment - Card 1) to work out this year’s figures.
Re-Apportionment of Overheads	Use information given to re-apportion figures for non-production cost centres into the other cost centres (given in the information) - working down the rows, totalling down columns until all costs are re-apportioned to the Production cost centres. Total across the bottom row – should equal the total of the initial Apportionment of Overheads.

Resource summary

	Created by claire.harrison almost 10 years ago

	Copied by Francois Erasmus about 8 years ago