COST APPORTIONMENT

 Cost Apportionment : 

There are some items of estimated overheads (like the salary of the works manager) which cannot be directly allocated to the various departments and cost centres . Such unallocable expenses are to be spread over the various departments or cost centres on the basis of two principles. This is called apportionment. Thus apportionment implies “the allotment of proportions of items of cost to cost centres or departments”. After this stage, all the overhead costs would have been either allocated to or apportioned over the various departments.