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Reapportionment of production service centres

Forums › ACCA Forums › ACCA MA Management Accounting Forums › Reapportionment of production service centres

  • This topic has 1 reply, 2 voices, and was last updated 6 years ago by John Moffat.
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  • October 6, 2018 at 3:59 pm #476638
    kingkongsajang
    Member
    • Topics: 95
    • Replies: 75
    • ☆☆

    Why is it called reapportionment and not just apportionment?

    Also are these service cost Centres such as maintenance and canteen a part of the business? I.e it is run by the business? Is that why it’s called production service cost Centres?

    Thank you.

    October 7, 2018 at 9:30 am #476681
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54699
    • ☆☆☆☆☆

    Reapportionment is when service centres do work for each other.

    The service centres are part of the business – they are departments that do work for the production departments but don’t actually produce anything themselves.

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