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Cost Apportionment (Distribution) – Accountants Club skip to Main Content

Cost Apportionment (Distribution)

When the cost items cannot be directly charged to or accurately traceable to a particular cost center, then such items of cost are prorated amongst various cost centers, on an equitable basis, this process is known as cost apportionment. It is the distribution of different items of cost in proportions to the cost unit or cost center on a suitable basis.

In simple terms, the expenses which are unallowable are dispersed over multiple departments, is known as apportionment.

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