overhead analysis
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Hi I know this is a really stupid question but its got me confused
i have to allocate plant insurance cost to 4 cost centers repairs valeting tow bars and stores on a basis of plant value. the total plant value is £180000 split as follows £100,000-repairs £35,000 -valeting £43,000 -tow bars and £2,000 -stores
The insurance cost is £2,500
the cost does'nt calculate exactly and i cant remember is there is a set rule that say's which i should round up or down or if i should forget about pence and just work in pounds
So if anyone has any advise it would be a great help
i have to allocate plant insurance cost to 4 cost centers repairs valeting tow bars and stores on a basis of plant value. the total plant value is £180000 split as follows £100,000-repairs £35,000 -valeting £43,000 -tow bars and £2,000 -stores
The insurance cost is £2,500
the cost does'nt calculate exactly and i cant remember is there is a set rule that say's which i should round up or down or if i should forget about pence and just work in pounds
So if anyone has any advise it would be a great help
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Comments
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Re:overhead analysis
In financial accounting the materiality of splitting pounds when you are dealing with thousands of pounds is quite irrelevant, I would say.
Adrian0 -
Re:overhead analysis
Exactly
By the time you get to the OARs a £1 difference will have been lost.
Focus on the main task, and don't worry about the rounding.
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