Question

What is meant by apportionment of costs? Discuss the principles of apportionment.

17 Aug 2023
Answer :
Word Count : 541

Apportionment of costs refers to the process of distributing or allocating common or joint costs among different cost centers, departments, products, or services within an organization. This is done to ensure that each segment of the organization bears a fair share of the costs that are incurred jointly or in common. The goal of apportionment is to accurately assign costs to the various segments based on their usage of resources or benefits derived from those resources.

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