Reapportion

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:29AM in AAT student discussion
I am bit struggle about how to reapportion when u deal with overheads cost.( unit 6 , chapter 4), and I don't think our tutor explain it clear enough. Anyway could someone give any tips?<BR><BR>Thanks

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    Reapportion

    Do you mean reapportioning overheads across various departments?<BR><BR>If so, the costs in the non-product related departments, ie Canteen, Admin etc., have to be re apportioned into the product producing departments.<BR><BR>If you have two non-product related departments and one is a user of the other, (ie Admin people would eat in the Canteen in the example above but Canteen department would not have any link with Admin) then you reapportion the costs of the most complicated one first (Canteen) so that it goes to zero, costs are then only left in Admin of the two non-product related departments and then the Admin costs can be reapportioned.<BR><BR>Hope this helps. I don't think I've explained it too well, but if you have a specific example you are looking at come back to me.<BR><BR>Good luck.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Reapportion

    Thanks, Burnawn. Your explaination does well on me.

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