Comments on: What Is The Difference Between Allocation And Apportionment? http://basiccollegeaccounting.com/what-is-the-difference-between-allocation-and-apportionment/ Free Online Accountancy Tutorials For Colleges & Universities Mon, 01 Dec 2008 16:48:55 +0000 http://wordpress.org/?v=2.6.1 By: slang http://basiccollegeaccounting.com/what-is-the-difference-between-allocation-and-apportionment/#comment-8356 slang Wed, 10 Jan 2007 11:27:17 +0000 http://basiccollegeaccounting.com/what-is-the-difference-between-allocation-and-apportionment/#comment-8356 as direct cost can be specifically identified, it is without saying an allocated cost. What it's mean is : say if you wants to charge labour overheads of $1000 to several cost centers. If you can specifically identify it to say cost center A (based on the abovementioned two criteria)then this whole $1,000 is fully allocated to cost center A otherwise it has to be apportioned by no of employees(example) in cost center A over Total no of employee of all the cost centers. Hopes this helps! as direct cost can be specifically identified, it is without saying an allocated cost.

What it’s mean is :
say if you wants to charge labour overheads of $1000 to several cost centers. If you can specifically identify it to say cost center A (based on the abovementioned two criteria)then this whole $1,000 is fully allocated to cost center A otherwise it has to be apportioned by no of employees(example) in cost center A over Total no of employee of all the cost centers.
Hopes this helps!

]]> By: Andrew http://basiccollegeaccounting.com/what-is-the-difference-between-allocation-and-apportionment/#comment-8355 Andrew Tue, 09 Jan 2007 13:58:36 +0000 http://basiccollegeaccounting.com/what-is-the-difference-between-allocation-and-apportionment/#comment-8355 Doesn't that definition of allocation mean that it's not an overhead but a direct cost?! Doesn’t that definition of allocation mean that it’s not an overhead but a direct cost?!

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