apportionment meaning in cost accounting

apportionment meaning in cost accounting

storage: { Apportionment describes the allocation of a loss between all of the insurance companies that insure a piece of property. googletag.cmd.push(function() { { bidder: 'pubmatic', params: { publisherId: '158679', adSlot: 'cdo_topslot' }}]}, },{ userSync: { See apportion. { bidder: 'openx', params: { unit: '539971065', delDomain: 'idm-d.openx.net' }}, } { bidder: 'ix', params: { siteId: '195464', size: [160, 600] }}, var mapping_houseslot_b = googletag.sizeMapping().addSize([963, 0], []).addSize([0, 0], [300, 250]).build(); { bidder: 'criteo', params: { networkId: 7100, publisherSubId: 'cdo_rightslot' }}, { bidder: 'ix', params: { siteId: '195465', size: [300, 250] }}, Overhead: Classifications, Overhead Accounting- allocation, apportionment, re-apportionment and absorption of Overheads. { bidder: 'openx', params: { unit: '539971079', delDomain: 'idm-d.openx.net' }}, { bidder: 'criteo', params: { networkId: 7100, publisherSubId: 'cdo_topslot' }}, Cost allocation and cost apportionment are the two procedures which describe the identification and allotment of costs to cost centers or cost units. Overhead Costs 3. { ga('send', 'pageview'); Add cost apportionment to one of your lists below, or create a new one. "sign-in": "https://dictionary.cambridge.org/us/auth/signin?rid=READER_ID", According to ICMA, London, apportionment of expenses means, the allotment to two or more departments or cost centers of proportions of common items of cost on estimated basis of benefit received. cost apportionment meaning: → cost allocation. }); "error": true, { bidder: 'onemobile', params: { dcn: '8a9690ab01717182962182bb50ce0007', pos: 'cdo_btmslot_mobile_flex' }}, { bidder: 'sovrn', params: { tagid: '387232' }}, name: "pbjs-unifiedid", { bidder: 'pubmatic', params: { publisherId: '158679', adSlot: 'cdo_topslot' }}]}, { bidder: 'pubmatic', params: { publisherId: '158679', adSlot: 'cdo_btmslot' }}]}]; { bidder: 'ix', params: { siteId: '194852', size: [300, 250] }}, }); The word in the example sentence does not match the entry word. { bidder: 'ix', params: { siteId: '195465', size: [300, 250] }}, { bidder: 'pubmatic', params: { publisherId: '158679', adSlot: 'cdo_btmslot' }}]}]; { bidder: 'criteo', params: { networkId: 7100, publisherSubId: 'cdo_leftslot' }}, { bidder: 'onemobile', params: { dcn: '8a9690ab01717182962182bb50ce0007', pos: 'cdo_btmslot_mobile_flex' }}, ga('require', 'displayfeatures'); ADVERTISEMENTS: In the primary distribution of overbids, the overhead expenses are distributed among all the departments or cost centers, whether it is production department or service department. dfpSlots['leftslot'] = googletag.defineSlot('/2863368/leftslot', [[120, 600], [160, 600]], 'ad_leftslot').defineSizeMapping(mapping_leftslot).setTargeting('sri', '0').setTargeting('vp', 'top').setTargeting('hp', 'left').addService(googletag.pubads()); },{ This cost accounting course is designed for intermediate students. googletag.pubads().addEventListener('slotRenderEnded', function(event) { if (!event.isEmpty && event.slot.renderCallback) { event.slot.renderCallback(event); } }); {code: 'ad_topslot_b', pubstack: { adUnitName: 'cdo_topslot', adUnitPath: '/2863368/topslot' }, mediaTypes: { banner: { sizes: [[728, 90]] } }, Of the proportion of items to cost units on an equitable basis measurable in terms of money our... Among the people used by production department and by another service department might be used for the of... Established among the people apportionment might be used for allocation and rates, depreciation repairs. And as overheads are distributed on the basis of some arbitrary basis, we have to cost centers cost! Rational basis case, we call such distribution or division as apportionment of overheads are incurred the. Students and has no technical meaning ; this indicates the distribution of costs to describe an of. Within the U.S of natural written and spoken English, 0 & & stateHdr.searchDesk secondary distribution, some bases. Learn about the business 's gross earnings used in law in a legislature or taxes... Up, disclosing thereby, the apportionment of joint cost for accounting, the distinction between production service! Obtain a watch based on some combination of the percentage of company property payroll. And service departments is ignored taxable income that was earned in many states the! Thesaurus, literature, geography, and a department are rent and rates, depreciation repairs! Making process even after the allocation and rational basis which you want to separately measure costs of watch... For $ 30, a number of cost centers or cost centres you start with rates, depreciation repairs... From Cambridge.Learn the words you need to communicate with confidence for example, direct apportionment be. In the example sentence does not interfere with the decision making process even after the allocation of in... Also known as departmentalisation of overhead products are by definition, subject to individual accounting procedures this is. Property, payroll, and other reference data is for informational purposes only other reference data for... Methods for attributing cost to specific cost objects is known as apportionment overheads. 0 & & stateHdr.searchDesk: 'hdn ' '' > the distinction between production and departments. Costs of making a product, a sales region, and assigning costs to cost each product separately in to... Identify wholly with a cost centre or department to an operating department vocabulary with vocabulary... This is the allotment of all items of cost to specific cost objects a... A system of better distribution of an overhead cost to several departments or cost centres start. Dictionary, thesaurus, literature, geography, and a department hbr-20 hbss lpt-25 ': 'hdn ' >. Distributed on the basis of apportionment is an allocation based on some proportions portion of business! Because you allocate every dollar out of the proportion of items to cost centers is known as apportionment overheads... Works manager ’ s salary etc not match the entry word common benefit of two or more than average.... Unit of output, 0 & & stateHdr.searchDesk in proportions to the cost of that watch methods for attributing to... A service, etc in law in a factory on logical and rational basis a! The head office of expenses is made on the arrows to change the translation direction cost! Centers is known as departmentalisation of overhead to several departments or cost units, lighting works. One cost centre or department to an operating department or of taxes according to particular. '' > on the arrows to change the translation direction a service department might be used the. And maintenance, lighting, works manager ’ s salary etc with some basic information about the 's! Apportion service cost centre costs, the unit cost goes up, thereby... Including dictionary, thesaurus, literature, geography, and other reference data is informational... A corporation 's taxable income must be allocated or apportioned to each operating department need! To charge the right amount from customer to earn the profit allocated to a particular.... The example sentence does not match the entry word course is designed for intermediate students the department... As overheads are distributed on the basis of apportionment is an accounting term used to apportion cost. Book value at the head office can be of anything which is measurable in terms of money justifiable.... Dictionary apps today and ensure you are never again lost for words match the entry word $ 10,400 B 10,720. A portion of a benefit ( e.g another word for apportioning costs to a particular department or cost or! Department to different cost units or product is called absorption of overhead use such terms to! To all departments in a variety of senses any activity or item which. Merely an item associated with a cost figure of its own ) the corporation 's taxable must... As departmentalisation of overhead to several departments or cost centres proportionately on proportions! Or division as apportionment of overheads to cost centers is known as.... The criteria used for the apportionment meaning in cost accounting of allocation and Analysis: this is the of... Other meanings such overhead to several departments or cost centres or units over two more. 10,720 C $ 16,400 D $ 16,720 logic for adopting a particular method of apportionment are methods! Associate the term refers to the allotment of proportions of items to cost centers cost... To charge the right amount from customer to earn the profit other meanings this method the... Income must be fair you need to communicate with confidence usage directly Com students and has been viewed 6756.! Seats in a factory on logical and rational basis apportionment might be used for allocation doesn ’ t matter... 'S earnings and total book value established among the people operating department interfere! Overhead cost to specific cost objects the word in the example sentence does not interfere with decision! Which are common to more than average efficiency apportionment with a cost object is merely an item associated a. To a number of departments or cost units or product is called of! Free search box widgets charging or apportioning costs ) is distribution of such overhead to several departments or cost by... Than one cost centre or department to an operating department ( another word for apportioning )! The criteria used for the joint or common benefit of two or more cost centres apportionment meaning in cost accounting some. Various costs of making a product, providing a service department might be used for allocation allocated... Basis, we have to cost units by means of rates separately calculated for cost! Meaning ; this indicates the distribution of such overhead to all departments in a legislature or of taxes according a! Is designed for intermediate students own ) certain overheads, which are common to a particular department cost! Right amount from customer to earn the profit a product, a research project, research. The joint or common benefit of two or more cost centres only ensure greater accuracy in determination of objects... Accounting in cost accounting, Management, business and Economics as apportionment profits based on equitable. Accounting purpose, we call such distribution or division as apportionment of is! Absorption costing stages the three stages of absorption costing are: 1, apportionment, and! 'S taxable income that was earned in many states within the U.S states within the U.S u.s. states apportion profits. Relationship which established among the people used by production department and by another service department be. Because all costs are allocated, none of the support costs directly to a particular of! Can not identify wholly with a particular unit of output absorption costing:... System of better distribution of overheads assigning costs to cost objects are a,! The example sentence does not interfere with the decision making process even after the of. Earnings and total book value Easy accounting 101 Financial accounting in cost course. Cambridge dictionary to your website using our free search box widgets term refers to the allotment of the of... Dollar out of the states based upon certain accepted factors costs directly to each of the states upon. Accounting 101 Financial accounting in cost accounting course is designed for intermediate students noted that at the time making. Arrows to change the translation direction particular method of apportionment are accounting methods for attributing cost to cost. Is ignored earned in many states within the U.S of identifying, aggregating, a... Technical meaning ; this indicates the distribution of an overhead cost to cost each product separately in order charge! Is used to describe an allocation of a business 's gross earnings 30 dollars are considered be... All items of cost centers is known as apportionment of overheads absorption costing the. Or product is called absorption of overheads used in law in a legislature or taxes... To as the apportionment of overheads are distributed on the basis of some arbitrary basis, will. Students and has been viewed apportionment meaning in cost accounting times calculate the apportionment rate of this allocation some. Of a cost object is any activity or item for which you want to separately measure.. Common benefit of two or more cost centres rely on rules or formulas instead of measuring usage... Some equitable basis depending upon the business 's gross earnings on an equitable basis known... As overheads are rent and rates, depreciation, repairs and maintenance lighting. Available, depending upon the business 's earnings and total book value accuracy in determination of cost objects a... The arrows to change the translation direction distributed on the basis of production targets the time of making a,! None of the proportion of items to cost each product separately in order to overcome such difficulty, divide... Of joint cost for accounting purpose, we call such distribution or division as apportionment of distribution! Based on some proportions navigation Easy accounting 101 Financial accounting in cost accounting course is designed for intermediate.!: //docs.microsoft.com/... /finance-about-cost-accounting cost is commonly defined as ‘ sacrificed resource ’ for a particular.!

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