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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Overheads
Hi dear john sir;
For re-apportionment of service deptt cost we may use repeated distribution method. My question is which service deptt cost will be shared first to other service deptt?
Yes – you can use either the repeated distribution method or the algebraic method. Both will give the same answer (and nobody will look at your workings for this anyway – only the final answer).
It does not matter which service department you share first – try it, and you will see that the final answer is the same whichever you share first.
For speed, you will find that it is quicker if you first choose the service department that does the lowest % work for the other service department.