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Sir What do u meany by direct method of apportionment and step down method of apportionment?
Plus u could clear my doubt here… What do u mean by relevance cost and irrelevant cost in decision making.. Do u have any lectures on this topic??
Direct apportionment is where you apportion the service centre directly to the production departments.
Step-down method is where the service departments do work for each other and so you keep having to re-apportion.Relevant costs are those costs that are taken into account when making decisions. Irrelevant costs are those that are ignored because they do not affect the decision.
Lectures on this are only for F5 because it is only in Paper F5 where it is asked in detail.
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