Management Accounting practice exam question 1.4

maylmi12

How do you simplify the ratio the ratio 56:44, 62:38 and apportion the costs?

haiyen90hn

they are simply equal to 56% and 44%, 62% and 38%

Pian32

More generally if you're using ratios A:B if used to split something you can think of share for A as being A/(A+B) and for B as B/(A+B) multiply each of those formulae by the total cost and they are apportioned as needed.