What Is The Difference Between Allocation And Apportionment?

This article differentiate allocation and apportionment of overheads:

Allocation Of Overheads:

Is to directly and specifically charge the overheads to the cost center. Two basic conditions exist before we can consider it as allocation: The cost center must have caused the overhead to be incurred and The exact amount of overhead must be known

Apportionment Of Overheads:

Where the overheads cannot be specifically identifiable to the specific cost unit center. Hence the need to find suitable basis to charge the various cost unit with a fair share of the overheads. Illustration: Types of Overheads Basis of apportionment Rent, rates, water and utilities By Area Office salaries, canteen, supervision By Number of employees Depreciation of fixed assets Cost/book value