accounting for costs

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January 3, 2020 at 2:33 pm #556781
izazwali
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what term is used for arbitrary sharing of overheads among cost centres?
a;overhead allocation
b;overhead apportionment
c;overhead absorbtion

I think the option A is correct sir please confirm
January 4, 2020 at 8:45 pm #556840
Ken Garrett
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Allocation means that the whole cost is mapped to one cost centre.

Apportionment is when costs are split over several cost centres.

Absorption is about including costs in the units produced.
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