Question: (a) Distinguish between cost allocation, cost apportionment and cost absorption, (b) Explain in brief various methods for apportionment of service departments cost over production departments.

(a) Distinguish between cost allocation, cost apportionment and cost absorption,

(b) Explain in brief various methods for apportionment of service department’s cost over production departments.

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a Cost Allocation Cost allocation involves assigning direct costs and a proportionate share of indirect costs to specific cost objects such as products services departments or projects It is usually a... View full answer

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