Hi Sir, May I know
1. We need to do allocation, apportionment and absoprtion
for production overhead ONLY
OR
for production and non-production overhead?
2. Production cost centre will incur what kind of costs? is it Direct material, direct labour and direct expense only?
3. Production overhead is the cost incurred by production cost centre or service cost centre? What are the examples of production overheads?
Thanks you so much
Ask the Tutor ACCA PM
Costing
7y ago#1This is not really relevant for Paper PM - it is examined in Paper MA (F2) and is not asked again in Paper PM.
1. For production overheads only
2. All costs incurred in the cost centre - including production overheads
3. This is explained (with examples) in my free lectures for Paper MA.
Again, this is not really a Paper PM topic. My free lectures for Paper PM cover everything needed to be able to pass the exam well (including revision of relevant topics from Paper MA(F2).)
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