--%>
Assignment Help - homework help

  Apportionment of Service Department

Introduction to Apportionment of service department overheads

After the overheads have been divided among production and service departments the costs of service departments are charged to such type of production departments that have been benefited through their services. Any one or more of the following techniques might be adopted for this purpose:

(a) Service or use method: within this technique overheads are distributed over several production departments on the basis of services in fact provided. This principle has the greatest applicability in cases in which overheads costs can be simply and directly traced to departments receiving the benefits, examples in case of a machine shop a record of services utilised through each departments can be kept through preserving proper job cards. But this basis cannot be employed in all cases, example in case of services rendered through the purchase office it will be not possible to trace the actual time taken through each member of the purchasing department for execution of each purchase order.

(b) Potential benefits: Within this technique service department overheads are changed to production departments on the basis of potential than actual services rendered. This technique is specifically helpful in which the service department costs are largely fixed and services have been given taking into consideration the potential needs of the several departments. For instance, a company might give for its own buses for transporting workers to and from the factory. The size of the fleet of buses has been fixed by taking into consideration the potential number of users. In such type of condition it seems fairly logical that the overheads of the transport department are charged to several production departments in proportion to the number of the potential users, in spite of of the actual number of workers within each department.

(c) Ability to pay method: This technique assume that higher the revenue of a production department, higher is the proportionate charge for services.For instance a textile mill might apportion its overheads among best quality and controlled quality of cloth on this basis. The controlled cloth might have to be sold at a price fixed through the Government and its manufacture might be 'must' for manufacturing superfine cloth according to the orders of the Government. This technique is inequitable since it penalise the efficient departments for their efficiency.

(d) Specific criteria method: Within this method particular criteria are laid down after careful survey for apportionment of charge for dissimilar service functions. This technique is mainly used when it is hard to select an appropriate basis for apportionment. For instance the works manager's salary might be apportioned on the basis of time and attention provided through him to different cost centres or the charge for services of cost accounting department might be apportioned to dissimilar production departments on the basis of number of workers worked in each department etc. On the basis of the above techniques, following can be taken like reasonable basis for apportionment of overheads of services departments over dissimilar production departments

2434_Apportionment of Service Department Homework Help.jpg

Latest technology based Cost Accounting Online Tutoring Assistance

Tutors, at the www.tutorsglobe.com, take pledge to provide full satisfaction and assurance in Apportionment of Service Department homework help via online tutoring. Students are getting 100% satisfaction by online tutors across the globe. Here you can get homework help for Apportionment of Service Department, project ideas and tutorials. We provide email based Apportionment of Service Department homework help. You can join us to ask queries 24x7 with live, experienced and qualified online tutors specialized in Apportionment of Service Department. Through Online Tutoring, you would be able to complete your homework or assignments at your home. Tutors at the TutorsGlobe are committed to provide the best quality online tutoring assistance for Cost Accounting homework help and assignment help services. They use their experience, as they have solved thousands of the cost accounting assignments, which may help you to solve your complex issues of Apportionment of Service Department. TutorsGlobe assure for the best quality compliance to your homework. Compromise with quality is not in our dictionary. If we feel that we are not able to provide the homework help as per the deadline or given instruction by the student, we refund the money of the student without any delay.