Allocation, Apportionment and Absorption of overheads

Meaning and Importance of Allocation, Apportionment and Absorption of overheads

Notes

Allocation, Apportionment & Absorption of Overheads

The process of charging such items of overhead to a particular department or cost centre is known as allocation of overhead. Allocation of overheads means charging all the amount of cost to a particular department or cost centre.It helps to make proper judgment for measurement of departmental efficiency.