Tag Archives | Overheads Accounting

Single and Departmental Overhead Absorption Rates | Accounting

In this article we will discuss about the single and departmental overhead absorption rates. Single Overhead Absorption Rate: It is also called as 'blanket overhead absorption rate'. It is a common absorption rate used throughout a factory and for all jobs and units of output irrespective of the departments in which they were produced or processed. It is a one [...]

By |2016-12-12T08:06:17+00:00December 12, 2016|Overheads|Comments Off on Single and Departmental Overhead Absorption Rates | Accounting

Re-Apportionment of Service Centre Costs | Overheads Accounting

In this article we will discuss about the re-apportionment of service centre costs. Also learn about the methods generally used in allocation of service department costs. Service departments may exist to provide services of various kinds to other departments. For example, personnel, maintenance, boiler house, pump house, power generation departments are service departments which provide service to the production and [...]

By |2016-12-12T08:06:17+00:00December 12, 2016|Overheads|Comments Off on Re-Apportionment of Service Centre Costs | Overheads Accounting

Absorption of Overheads: Meaning and Methods | Accounting

In this article we will discuss about the meaning and methods of overhead absorption. Meaning of Overhead Absorption: CIMA defines Absorption of Overheads as "the process of absorb, overhead costs allocated or apportioned over a particular cost centre or production department by the units produced". Absorption of overheads refers to charging of overheads to individual products or jobs. It is [...]

By |2016-12-12T08:06:17+00:00December 12, 2016|Overheads|Comments Off on Absorption of Overheads: Meaning and Methods | Accounting
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