Module 10 - Overhead Accounting Flashcards Preview

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Flashcards in Module 10 - Overhead Accounting Deck (4)
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1
Q

Overhead

A

any cost which doesn’t relate to a specific product

2
Q

Overhead appointment process

A
  1. allocation
  2. re-apportion
  3. absorption
3
Q

Direct method of reapportioning service centre costs

A

Reapportion costs directly to production departments ignoring the time service departments spend in other service departments

4
Q

Indirect method of reapportioning

A

The first service department to have its costs reapportioned across the other departments is the one that spends the greatest proportion of its time providing services to the other service department