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The apportionment of overheads refers to the process of distributing indirect costs to different cost centers or departments. It is a crucial task in cost accounting as it helps allocate shared expenses, such as rent, utilities, and salaries, to products or services accurately. There are several principles and methods used to apportion overheads, ensuring that indirect costs are distributed fairly and in proportion to the benefit each cost center derives from those overheads. One principle of apportionment is the benefit received principle, which suggests that overheads should be allocated based on the benefit each department or cost center derives from the common resource. For ________ _____ ________ _______ __________ _________ ________ __________ _____ ___ _____.
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